TMI Blog1994 (3) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... e effect to the application under section 154 moved by the assessee and whether there has been any mistake apparent from the record which could be rectified ? " The assessee is a private limited company. For the assessment year 1978-79 (accounting year ending May 31, 1977), the assessee filed its return of income on June 30, 1978, disclosing an income of Rs. 96,280. Assessment was completed by the Income-tax Officer assessing the income at Rs. 2,93,339. He brought to tax an amount of Rs. 1,91,718 under the head " Capital gains ". It so happened that the assessee on June 7, 1976, purchased two flats bearing Nos. 204 and 205 in Madhuban building, Nehru Place, New Delhi, from Ansal Properties and Industries (P.) Ltd. for an amount of Rs. 2,2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the compulsory acquisition thereof under any law. " Subsequently, this clause was amended twice--once with effect from April 1, 1985, and again with effect from April 1, 1988. After April 1, 1988, sub-clause (v) was added, and earlier from April 1, 1985, the word " transfer " had been redefined with reference to sub-clauses (i), (ii), (iii) and (iv). Now, this clause after two amendments reads as under : " (47) ' transfer ', in relation to a capital asset, includes,-- (i) the sale, exchange or relinquishment of the asset ; or (ii) the extinguishment of any rights therein ; or (iii) the compulsory acquisition thereof under any law ; or (iv) in a case where the asset is converted by the owner thereof into, or is treated by him as, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in held that the income arising out of the transaction in question was assessable in the hands of the assessee " because if not immovable properties as such at least right in the immovable properties has been transferred ". The assessee filed an appeal before the Commissioner of Income-tax (Appeals) wherein he succeeded and the order in appeal is dated December 1, 1988. The Commissioner of Income-tax (Appeals) found that there was no transfer within the meaning of section 2(47) of the Act. He recorded the submission of the assessee that it had refunded the consideration received and that it had charged rent from sehgal Papers Ltd. and also had taken back possession from them on June 1, 1982, and again rented out the two flats to Hindustan F ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he order of the Tribunal dated September 14, 1984, having become final, wherein the Appellate Tribunal held that there was a mistake apparent on the record and that the application under section 154 of the Act was maintainable, the issue regarding the applicability of section 154 of the Act, now sought to be raised in the proposed question, does not survive. As regards the amendments in section 2(47) of the Act, these are substantive in nature, and further if what Mr. Gupta said was correct there was no need for the Legislature to mention that these amendments would be effective from particular dates. We may also note that the Central Board of Direct Taxes, in its Circular No. 495 dated September 22, 1987, had also clarified that the said a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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