TMI Blog1985 (8) TMI 6X X X X Extracts X X X X X X X X Extracts X X X X ..... competent appeal lay before the Appellate Assistant Commissioner against the order of the Income-tax Officer ? (2) Whether in view of the finding of the Tribunal that there was no competent appeal before the Appellate Assistant Commissioner, the Tribunal was correct in entertaining the departmental appeal and in setting aside the order of the Appellate Assistant Commissioner? (3) Whether, on the facts and in the circumstances of the case, section 34(1D) of the Indian Income-tax Act, 1922, was a bar to the Revenue in rectifying the assessment order for the assessment year 1947-48 in the manner done by the Income-tax Officer?" Before the facts are taken up, it is necessary to point out that the question of assessment relates to the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssessment order dated June 14, 1969, assessed the total income at Rs. 1,68,987 for the assessment year 1947-48 in the name of the assessee as an individual, under section 23(3) of the 1922 Act. On appeal before the Appellate Assistant Commissioner, the assessee asserted that the amount of Rs. 1,27,000 relating to the amount encashed relating to the high denomination notes should have been assessed in the assessment year 1946-47 and not in the assessment year 1947-48. The Appellate Assistant Commissioner held that the amount of Rs. 1,27,000 was business income of the assessee and it was rightly assessed in the assessment year 1947-48. The assessee appealed before the Tribunal and the Tribunal disposed of the assessee's appeal relating to the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ofits tax was withdrawn. This order of the Income-tax Officer has been annexed and marked as annexure " A " forming part of the statement of the case. When the matter went before the Appellate Assistant Commissioner, he found that the assessee and his group had made disclosure of escaped income of Rs. 86,30,349 before the Central Board of Revenue and a settlement was made on that income under section 34(1B) of the 1922 Act and in that settlement order dated August 20, 1960, the value of the high denomination notes encashed by the assessee, Chatturam, was taken at Rs. 1,27,000. The Appellate Assistant Commissioner held that this amount had already been subjected to tax under the settlement order and the matter had become conclusive and fin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assed on December 30, 1949, had not been the result of any settlement made between the Department and the assessee and that when as a result of the order of the Tribunal, excess profits tax liability was modified and there was no liability for the tax, the original order deducting the excess profits tax liability could be rectified under section. 35(6) of the 1922 Act corresponding to section 155(3) of the 1961 Act. The Tribunal also held in that case that it cannot be held that the amount of Rs. 2,98,000 was assessed in 1947-48 as a part of the settlement and merely because it was made part of the total disclosure of Rs. 86,03,349 by the group of the assessee, it could not be held that a mistake in the order for the assessment year 1947-48 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Tribunal was correct in holding that no competent appeal lay before the Appellate Assistant Commissioner against the rectification order of the Income-tax Officer and that the Tribunal was justified in entertaining the appeals and in setting aside the order of the Appellate Assistant Commissioner and that section 34(1D) of the 1922 Act was not a bar to the Revenue in rectifying the assessment for the assessment year 1947-48 and for other years involved in those cases in the manner done by the Incometax Officer. For the detailed reasons mentioned in the consolidated order dated May 14, 1985, in the aforesaid taxation cases ([1958] 158 ITR 278 (Pat) ), I hold in this case also that the Tribunal was correct in holding that no competent appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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