ORDER This is an Income Tax Reference under section 256(1) of the Income Tax Act, in which following question has been referred to us for our opinion :
"Whether on the facts and in the circumstances of the case, the Tribunal was correct in holding that the rectification under section 154 made in the above case was barred by limitation ?"
2. Section 154(7) of the Income Tax Act as it stood in the relevant assessment year 1971-72 states :
2. Section 154(7) of the Income Tax Act as it stood in the relevant assessment year 1971-72 states :
"Save as otherwise provided in section 155 or sub-section (4) to section 186 no amendment under this section shall be made after expiry of four years from the date of order sought to be amended."
3. In the petition present case the assessment order was passed on 21-8-1971 and the first rectification under section 154 was made on 28-2-1977. The second rectification with which we are concerned was made on 8-2-1977. The question is whether four years will run from the original assessment order or from 28-2-1997. The facts of this case are covered by the Supreme Court decisions in Hind Wire Industries Ltd. v. CIT (1995) 212 ITR 639 (SC) and Waldies Ltd. v. CIT (1997) 223 ITR 163 (SC).
3. In the petition present case the assessment order was passed on 21-8-1971 and the first rectification under section 154 was made on 28-2-1977. The second rectification with which we are concerned was made on 8-2-1977. The question is whether four years will run from the original assessment order or from 28-2-1997. The facts of this case are covered by the Supreme Court decisions in Hind Wire Industries Ltd. v. CIT (1995) 212 ITR 639 (SC) and Waldies Ltd. v. CIT (1997) 223 ITR 163 (SC).
4. Following the aforesaid decisions the question referred to us is answered in the negative, i.e., in favour of the department and against the assessee.
4. Following the aforesaid decisions the question referred to us is answered in the negative, i.e., in favour of the department and against the assessee.