COMMISSIONER OF INCOME TAX Vs. BIMETAL BEARINGS LIMITED

JUDGEMENT

(1.) IN compliance with the direction given by this Court in TCP Nos. 58 and 59 of 1978, dt. 9th November, 1978, the Tribunal referred the following question, for the asst. yrs. 1966-67 and 1967-68, for the opinion of this Court, under s. 256(2) of the IT Act, 1961 hereinafter referred to as the "Act" :

(2.) IN the case of this assessee, assessment for the asst. yr. 1966-67 was re-opened under s. 147(b) of the Act and the revised assessment was made. Subsequently that order was rectified for granting further depreciation allowance for certain assets. Later on, the ITO initiated action under s. 154 of the Act, on the ground that there was a mistake in the regular assessment itself in the computation of capital for the purpose of grant of relief under s. 84 r/w r. 19. The mistake alleged was that for the earlier assessment year, viz., 1965-66, the assessee filed its return of income on 30th June, 1965 and under s. 140-A a sum of Rs. 12,81,274 became due, that for asst. yrs. 1966-67 the average liability on 1st July, 1964 being the first day of the computation period and the liability on 30th June, 1965 being the last of the computation period amounting to Rs. 6,40,637 should have been deducted as a liability from the capital and that this was not done. The assessee objected to the proposal for revising the assessment on the ground that while completing the regular assessment for 1965-66 and 1966-67 the ITO had considered the tax liabilities and had mentioned that the tax liabilities need not be taken into account and that, therefore, there was no mistake apparent from the record. The ITO rejected the assessee's contention and passed the order under s. 154 of the Act. For the next asst. yr. 1967-68 on the same date, the ITO following the reasons mentioned by him in respect of the asst. yr. 1966-67, recomputed the relief under s. 84.

(3.) THE point for consideration is, whether s. 154 of the Act would apply to the facts of this case.