LexMIS HIND WIRE INDUSTRIES LTD. versus THE COMMISSIONER OF INCOME TAX, WEST BENGAL-V
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~-'-" 1 >-- ., .... MIS HIND WIRE INDUSTRIES LTD. A v. THE COMMISSIONER OF INCOME TAX, WEST BENGAL-V JANUARY 20, 1995 [P.B. SAWANT AND G.N. RAY, JJ.] B Income Tax Act, 1961-Section 154(7) as it stood on 21st Sepember, 1979--Expression 'from the date of the order sought to be amended'-lnter- pretation of-Word 'order' would mean any order including amended or rec- lifted order. c The appellant assessee was assessed for income-tax originally under the assessment order dated 21st September, 1979. The assessee filed a petition for rectification of the assessment order U/s 154 of the Income Tax Act. The assessment order was rectified on 12th July, 1982. Thereafter, the D assessee again applied for rectification of the fresh order on 4th July, 1986. The Income Tax Officer dismissed the assessee's claim on the ground that the application was beyond time. This order was confirmed by the Appel- late Assistant Commissioner. On appeal, the Tribunal allowed the applica- tion holding that the application for rectification made on 4th July, 1986 was within 4 years of the fresh order of assessment made on 12th July, E 1982 and hence within limitation. On reference, the High Court reversed the order of the Tribunal holding that the period of 4 years was to be calculated from the initial order of assessment, viz., from 21st September, 1979. Hence this appeal. '" The question raised was regarding the interpretation of Section 154(7) of F the Act. Allowing the appeal, this Court HELD : The word 'order' in the expression 'from the date of the order G sought to be amended' in sub-section (7) of Section 154 of the Income Tax. Act as it stood at the time of the assessment order dated 21st September 1979, had not been qualified in any way and it did not necessarily mean the original order. It would mean even the rectified order. [527-F] International ~otton Cotporation v. C.T.O., [1975) 2 SCR 345 and H 519 520 SUPREME COURT REPORTS [1995) 1 S.C.R. A Deputy Commissione~· of Commercial Taxes v. H.R. Sli Ranwlu, (1977) :.19 STC 180, relied on. CIVIL APPELLATE JURISDICTION : Civil Appeal Nos. 1323-27 of 1995. B From the Judgment and Order dated 24.3.93 of the Calcutta High c Court in I.T.R. No. 51 of 1991. Dr. Shankar Ghosh and R. Mukherjee for the Appellant. ' G.V. Iyer, S.N. Terdol and R. Satis~ for the Respondent. The followin.g Order of the Court was delivered : Special leave granted. Heard counsel on both sides. What is challenged in these appeals is the decision of the Calcutta D High Court interpreting the provisions of Section 154(7) of the Income Tax Act (hereinafter referred to as the 'Act') as it stood at the time of the assessment order dated 21st Septmber, 1979. Shortly stated, facts are that the appellant assessee was assessed for income tax originally under the assessment order dated 21st September, E 1979. The assessee filed a petition for rectification of the said order under Section 154 of the Act as it stood then on the ground that the Income Tax Officer had not taken into consideration the shift allowance available to the assessee. Consequent upon this application, the assessment order was rectified on 12th July, 1982. Thereafter, the assessee again applied for F rectification of th~ fresh order of 12th July, 1982 on 4th July, 1986 contend- ing that while he was entitled to depreciation allowance on factory building at the rate of 10%, he was allowed the depreciation only at the rate of 5%. The Income Tax Officer dismissed the assessee's claim on the ground that the application was beyond time. This order was confirmed by the Appel- late Assistant Commissioner. In the appeal, the Tribunal, however, allowed G the application holding that the application made on 4th July, 1986 was within 4 years of the fresh order of assessment made on 12th July, 1982 and hence within limitation. On reference, the High Court reversed the order of the Tribunal holding that the period of 4 years is to be calculated from the initial order of assessment, viz., from 21st September, 1979 and . H not fyom the fresh order of assessment passed on 12th July, 1982. ) ,; ( HIND WIRE INDS. LTD. v. COMMR. OF INCOME TAX 521 There is no dispute that the asses~ee would be entitled to 10% A depreciation allowance on the factory building and it has lo be granted to him if it is held that this rectification application was within time. Section 154 of the Act, as it stood at the releva
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