COMMISSIONER OF INCOME TAX Vs. ARUNA LUTHRA

JUDGEMENT

(1.) CAN proceedings for rectification of an order passed under the provisions of the IT Act, 1961, be initiated on the basis of a judgment delivered by the jurisdictional or a superior Court after the passing of the said order ? This is the short question that arises for consideration in this case. A few facts as relevant for the decision of this case may be noticed.

(2.) THE respondent assessee filed her return for the asst. year 1987 88. She declared an income of Rs. 44,380. While computing the profit from business, the assessee claimed a deduction of Rs. 74,205 on account of loss in chit fund. The AO framed the assessment under S. 143(1)(a) of the IT Act, 1961. Vide order dt. 30th March, 1988, the income as declared by the assessee was accepted. A copy of this order is at Annexure P.4 with the appeal.

(3.) ON the other hand, Mr. Sanjay Bansal, learned counsel for the respondent assessee, contended that a decision delivered by a Court subsequent to the passing of the order cannot constitute an error apparent from the record so as to entitle the authority to proceed under S. 154.