COMMISSIONER OF INCOME TAX Vs. PERMALI WALLANCE LIMITED

JUDGEMENT

(1.) THIS order shall dispose of Miscellaneous Civil Cases Nos. 105 to 112 of 1978 as well, as the questions are common in all these cases.

(2.) THE CIT, Madhya Pradesh -I, Bhopal, has filed this application under s, 256(2) of the IT Act, 1961, praying that the Tribunal, Indore Bench, may be directed to send the statement of case and refer certain questions said to be questions of law arising out of its order dated March 31, 1977.

(3.) ASSESSMENT years relevant for these cases are 1965 -66 to 1971 -72. The ITO had framed assessments for the assessment years in question wherein depreciation and development rebate had been allowed to the assessees. Later, the ITO sought to rectify his assessment order under s. 154 of the IT Act. He issued notice dated December 14, 1977, mentioning the mistakes sought to be rectified and fixed the matter for hearing on the very next day, i.e., December 15, 1977. The assessee represented that the time given to it to submit its reply was insufficient as it had to consult its tax consultant at Bombay. The assessee also submitted its reply on the alleged mistakes which the ITO had proposed to rectify. However, the ITO did not extend the time on the ground that the matter was getting timebarred and passed the order of rectification under S. 154 of the Act on December 15, 1977, withdrawing the development rebate and depreciation and adding the amount in the total income of the assessee.