TMI Blog1994 (3) TMI 40X X X X Extracts X X X X X X X X Extracts X X X X ..... deposit refund in the petitioner's total assessable income following the judgment of the Income-tax Appellate Tribunal for the assessment years 1971-72 and 1972-73. Since the judgment of the Tribunal for the assessment years 1971-72 and 1972-73 was reversed by this court by the judgment dated July 4, 1980, in Tax Cases Nos. 683 and 684 of 1976, in M. K. Kuppuraj v. CIT [1981] 127 ITR 447, and since this court has held that the refund of annuity deposit was not assessable as the petitioner's income, he filed a petition before the first respondent under section 154 of the Income-tax Act, 1961 (hereinafter referred to as " the Act "), within the period of four years from the date of the first respondent's order, for rectification of the mistak ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... record warranting rectification under section 154 of the Act. Per contra Mr. N. V. Balasubramanian, learned counsel for the respondents, relying on the decisions, (1) State of Tamil Nadu v. KS. M. G. Meenambal and Co. [1984] 56 STC 82 (Mad), (2) State of Tamil Nadu v. Everest Trading Company [1987] 67 STC 148 (Mad), submitted that the assessment contrary to a judgment subsequently rendered would not constitute an error on the face of the record and, therefore, the petitioner is not entitled to any relief under section 154 of the Act. In the light of the rival contentions of learned counsel for the parties, the following question arises for consideration in this writ petition : " Whether the assessment dated August 31, 1976, made in the pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mbakonam Electric Supply Corporation Limited v. CIT [1963] 50 ITR 809, rendered on January 16, 1963, to the effect that wealth-tax paid was not deductible from the income from business for arriving at the taxable income and overruling the objections of the assessee, rectified the assessment orders by adding back the wealth-tax which was originally deducted. The assessee's appeals failed before the Appellate Assistant Commissioner and the Tribunal. On a reference to this court at the instance of the assessee, this court held that the decision of the High Court made it clear that the Income-tax Officer committed an error in deducting the wealth-tax from the income of the assessee and that error was apparent from the record and, therefore, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bsequent decisions on this question and the retrospective amendment of the law in this behalf because at the time when the Income-tax Officer took proceedings under section 154 this was the only binding decision in existence and, therefore, it was not merely the right but the duty of the Income-tax Officer to give effect to the law as declared by this court in the decision referred to above by correcting the mistake which he had already committed. Consequently, our answer to the first question referred to above is in the affirmative and against the assessee. " The decisions relied upon by learned counsel for the respondents were rendered interpreting the scope of section 55 of the Tamil Nadu General Sales Tax Act, 1959, whereas the decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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