TMI Blog1989 (12) TMI 74X X X X Extracts X X X X X X X X Extracts X X X X ..... ing fresh hearing the appeals are being decided exercising my discretion under r. 24 of the Income-tax Appellant Tribunal Rules, 1963. 2. The orders brought in appeals are all dated 5th April, 1988 passed by the CIT (A)-II. Amristsar, hereinafter referred as the CIT(A) in respect of asst. yrs. 1979-80 and 1980-81, the related orders having been passed by the IAC(a) short for IAC (Asst.), Range-II, Amristsar, under s. 154 of the IT Act, 1961. 3. Data and information regarding dates of assessments, when the proceedings under s. 154 of the Act were completed as also the relief allowed under s. 80L(1) of the Act which came to be withdrawn is given in the following graphical chart: Name of assessee Asst. year Date of asst. Order Date of order under s. 154 Disputed 80L of relief in respect intt. Received from M/s. Raj Manohar Bros., Pathankot which was allowed in the original asst but Withdrawn under s. 1154 of the Act. Sh. Manohar Lal Mahajan 1979-80 11-3-1982 14-12-1987 2401 -do- 1980-81 29-1-1983 -do- 2645 Sh. Surjit Kumar Mahajan 1979-80 11-3-1982 -do ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the learned counsel, I find that the same was with regard to rectification made by the Department on retrospective amendment of s. 5(1)(iii) of the WT Act. This judgment is also not helpful to the assessee. There are number of Supreme Court's decisions and the decision of the Punjab Haryana High Court in which it has been held that if an order is plainly and obviously inconsistent with the specific and clear provision as amended retrospectively, there is a mistake apparent from record which can be rectified under s. 154. This view was upheld in the following judgments: (i) M.K. VENKATACHALAM vs. BOMBAY DYEING MFG. CO. LTD. (1958) 33 ITR 143(SC). (ii) CTO vs. VENKATASHWAR OIL MILLS 1973 CTR (SC) 346 : (1973) 34 STC 660 (SC) (iii) BASPPA BROS. vs. DEPUTY CCT (1971) 27 STC 241 (Mys) affirmed by the Supreme Court in (1975) 35 STC 1. (iv) IAC OF AGRICULTURAL INCOME-TAX vs. V.M. RAVI NAMBOORIPAT (1974) 96 ITR 73-(1974) Tax LR 520 (SC). (v) CIT vs. GIAN TALKIES (1980) Tax LR 1443-1445 (Punj). Thus the decisions of the Punjab High court and of the Supreme Court go against the appellant. In this case, a retrospective amendment was made to s. 80L, w.e.f. 1st April, 19 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company or Indian companies included in the gross total income. (2) In a case where the assessee is entitled also to the deduction under section 80K, in relation to the whole or any part of the income by way of dividends referred to in sub-s. (1), the deduction under sub-s. (1) shall be allowed in respect of such income as reduced by the deduction under s. 80K." 9. In the present case, the controversy is limited to sub-s. (1) only and, therefore, it shall not be necessary to involve with sub-s. (2) though the relevance of sub-s. (3) brought retrospectively on the statute book w.e.f. 1st April, 1976 will have to be dealt which I shall do later. 10. Sub-s. (1) of s. 80L of the Act came to be enlarged marginally by the Finance Act, 1968 (19 of 1968) w.e.f. 1st April, 1969 as follows; "1. Where the gross total income of an assessee includes any income by way of dividends from an Indian company or Indian companies, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction as specified hereunder namely:- (i) in a case where the amount of such dividends does not exceed five hundred ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... bank or banking institution referred to in s. 51 of that Act) or a co-operative society engaged in carrying on the business of banking (including a co-operative land mortgage bank or a co-operative land development bank); (vii) interest on deposits with a financial corporation which is engaged in providing long term finance for industrial development in India and which is approved by the Central Government for the purposes of cl. (viii) of sub-s. (1) of s. 36; (ix) dividends from any co-operative society, there shall, in accordance with and subject to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction as specified hereunder, namely: (a) in a case where the amount of such income does not exceed in the aggregate three thousand rupees, the whole of such amount; and (b) in any other case, three thousand rupees." 13. At it is, the lower authorities have not looked at the history of the provisions and considered all the changes brought in relation to 80L by the Taxation Laws (Amendment) Act, 1984 retrospective amendment is only with regard to cl. (c) of sub-s. (1) where for the words "consisting only of", the "consisting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... me of the husband was to be divided between him and his wife the benefits of vice-versa position, i.e. the income of the wife was equally divisible in two parts, was not available Therefore, in fact, the benefits of s. 80L(1) from 1st April, 1971 were contemplated in respect of individuals (in whatever category they came from) and Hindu Undivided families only. May be that in the third category the amendment became necessary but there was no other change in respect of Individual. 18. Therefore the Income-tax Authorities were wholly justified in correcting legal errors by taking recourse to the provisions of s. 154 of the Act and withdrew the relief given. The assessees, must therefore, fail on this score. 19. Independent of the above, if there would be said to be any doubt the same came to be statutorily clarified by the insertion of sub-s. (3) to s. 80L of the Act, which could not be said to be amendment on the provisions by any stretch of imagination. 20. The assessee accordingly fails on two counts independent of each other though my reasons are different than the one given by the lower authorities. 21. Result:— Appeals dismissed. - - TaxTMI - TMITax - Income Ta ..... X X X X Extracts X X X X X X X X Extracts X X X X
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