{"id":20291,"date":"1998-09-21T00:00:00","date_gmt":"1998-09-20T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-bhooratnam-and-co-on-21-september-1998"},"modified":"2016-02-04T17:16:46","modified_gmt":"2016-02-04T11:46:46","slug":"commissioner-of-income-tax-vs-bhooratnam-and-co-on-21-september-1998","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-bhooratnam-and-co-on-21-september-1998","title":{"rendered":"Commissioner Of Income-Tax vs Bhooratnam And Co. on 21 September, 1998"},"content":{"rendered":"<div class=\"docsource_main\">Andhra High Court<\/div>\n<div class=\"doc_title\">Commissioner Of Income-Tax vs Bhooratnam And Co. on 21 September, 1998<\/div>\n<div class=\"doc_citations\">Equivalent citations: 1999 238 ITR 674 AP<\/div>\n<div class=\"doc_bench\">Bench: S Maruthi, R B Reddy<\/div>\n<\/p>\n<pre><\/pre>\n<p>JUDGMENT<\/p>\n<p> S.V. Maruthi  <\/p>\n<p> 1. This petition is filed by the Revenue under Section 256(2) of the Income-tax Act, 1961 (for short &#8220;the Act&#8221;).\n<\/p>\n<p>2. The facts in brief are as follows :\n<\/p>\n<p>The assessee-firm was engaged in the business of manufacture and supply of RCC spun pipes and PSC concrete pipes. The assessee also undertook the work of laying of RCC pipes and PSC concrete pipes. For the assessment years 1987-88 and 1988-89, the assessee was allowed investment allowance in a total sum of Rs. 10,22,341. The assessee claimed set-off of unabsorbed allowance against income for the assessment year 1989-90. The said unabsorbed allowance was set off against the income for the assessment year 1989-90. The said claim was accepted by the Assessing Officer while framing the assessment. But later, he initiated action under Section 154 of the Act proposing to withdraw the unabsorbed investment allowance relying on the judgment of the Supreme Court in the case of CIT v. N.C. Budharaja and Co. . Accordingly, he passed the consequential order modifying the assessment made for the assessment year 1989-90 by withdrawing the set-off of unabsorbed investment allowance of the earlier years. On appeal, the Commissioner of Income-tax (Appeals) found that the judgment in N. C. Budharqja&#8217;s case  is not applicable to the facts of the case. On further appeal to the Tribunal, the Tribunal held that the Income-tax Officer in exercise of the power under Section 154 of the Act can only rectify the mistakes which are apparent from the record and he cannot go deep into the subject and upheld the order of the Commissioner of Income-tax (Appeals). The Tribunal also refused\/rejected the petition filed by the Revenue under Section 256(1). Hence, the Revenue is before us under Section 256(2) of the Act.\n<\/p>\n<p>3. Section 154 of the Act empowers the income-tax authority to rectify any mistake apparent from the record. Admittedly, in this case, the Income-tax Officer exercised the power under Section 154 relying on the judgment of the Supreme Court in N. C. Budharaja&#8217;s case . Interfering with the assessment order relying on a judgment of the Supreme Court cannot be said to be rectifying the mistake apparent on the record. On the other hand, it is an order on the merits taking a different view relying on the judgment of the Supreme Court. Therefore, we agree with the view expressed by the Tribunal that the Income-tax Officer should not have rectified the assessment order under Section 154 of the Act. The petition is, therefore, dismissed.\n<\/p>\n<p>4. No costs.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Andhra High Court Commissioner Of Income-Tax vs Bhooratnam And Co. on 21 September, 1998 Equivalent citations: 1999 238 ITR 674 AP Bench: S Maruthi, R B Reddy JUDGMENT S.V. Maruthi 1. This petition is filed by the Revenue under Section 256(2) of the Income-tax Act, 1961 (for short &#8220;the Act&#8221;). 2. The facts in brief [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[10,8],"tags":[],"class_list":["post-20291","post","type-post","status-publish","format-standard","hentry","category-andhra-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Commissioner Of Income-Tax vs Bhooratnam And Co. on 21 September, 1998 - Free Judgements of Supreme Court &amp; High Court | Legal India<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.legalindia.com\/judgments\/commissioner-of-income-tax-vs-bhooratnam-and-co-on-21-september-1998\" \/>\n<meta property=\"og:locale\" content=\"en_US\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"Commissioner Of Income-Tax vs Bhooratnam And Co. on 21 September, 1998 - Free Judgements of Supreme Court &amp; 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