PALANISWAMI P Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THE Income-tax Appellate Tribunal, Madras Bench, under Section 256(1) of the Income-tax Act, 1961, has referred the following questions of law for the opinion of this court:

(2.) THE short fads that are necessary for appreciating the above questions are as follows ;

(3.) WE have already pointed out that the Appellate Assistant Commissioner allowed the appeal preferred by the assessee against the order of the Income-tax Officer seeking to rectify the mistake of the wrong allowance of depreciation under Section 154 of the Income-tax Act, 1961. However, in doing so, what the Appellate Assistant Commissioner did was not merely to hold that the mistake was not capable of being rectified under Section 154 of the Act, but there was no mistake at all, or, in other words, there was no escapement of the taxable income. This is what the Appellate Assistant Commissioner has stated in his order :