COMMISSIONER OF INCOME TAX Vs. EVA RAHA SMT

JUDGEMENT

(1.) " Whether, on the facts and in the circumstances of the case, the Tribunal was legally correct in refusing to rectify its orders dated May 30, 1974, in I.T.A. No. 709 (Gau) of 1972-73, and dated May 31, 1974, in I.T.A. No. 710 (Gau) of 1972-73, having regard to the provisions of Section 13 of the Direct Taxes (Amendment) Act, 1974, on the ground that it was a debatable point and so no rectification order can be passed under Section 254(2) of the Income-tax Act, 1961, relating to the assessment! years 1961-62 and 1962-63 ? "

(2.) THE above common question has been referred to the High Court under Section 254(4) of the I.T. Act, 1961, for short " the Act " by the Income-tax Appellate Tribunal, Gauhati Bench at Gauhati.

(3.) BEING aggrieved by the assessment order and penalty in respect of the assessment year 1962-63, the assessee filed two appeals and the AAC set aside both the orders with similar directions as in respect of the assessment year 1961-62. On remand, the ITO, for the assessment year 1962-63, made fresh assessment and determined the tax payable at Rs. 11,443 after crediting an advance tax of Rs. 3,390 paid by the assessee. Thereafter, the ITO imposed a penalty of Rs. 5,772 computed at the rate of 2% of the tax payable on Rs. 11,443 for 48 months of default, but limited it to 50% of the tax payable. The order of penalty was imposed under Section 271(1)(a) of the Act on March 15, 1973.