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PETITIONER: THE INCOME-TAX OFFICER, ALWAYE
Vs.
RESPONDENT: THE ASOK TEXTILES LTD., ALWAYE
DATE OF JUDGMENT: 13/12/1960
BENCH: KAPUR, J.L. BENCH: KAPUR, J.L. HIDAYATULLAH, M. SHAH, J.C.
CITATION: 1961 AIR 699 1961 SCR (3) 236 CITATOR INFO : E&D 1987 SC 575 (5)
ACT: Income-tax--Rectification, scope of--If can be equated with review under the Code--Advance Payment of tax-Penal interest due to additional tax on rectification, if could be imposed- Code of Civil Procedure (V of 1908), O. 47, r. 1-Indian Income-tax Act, 1922 (11 of 1922), ss. 18A (8), 35.
HEADNOTE: After the respondents net assessable income for the years ,952-53 was determined, it declared dividends which attracted provisions of the Finance Act, 1952, and became liable to the 237 payment of additional income-tax, which fact was overlooked by the Income-tax Officer, who, after giving notice under s. 35 of the Income-tax Act, rectified the error and imposed an additional tax at the rate of one anna in the rupee. He later discovered that this was also erroneous and the rate should have been five anmas in a rupee and rectified the error; by the same order the omission to impose penal interest under s. 18A(8) was rectified and penal interest was imposed. The respondent’s case before the High Court was that s. 35.of the Act did not apply and that on the merits the addition...