Gujarat H.C : Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the ITO had no jurisdiction to pass an order of rectification under s. 154 r/w s. 155(7A) of the IT Act, 1961, in relation to the asst. yr. 1972-73?

High Court Of Gujarat

CIT vs. Motichand Virpal Shah

Sections 154, 155(7A)

Asst. Year 1972-73

A.R. Dave & D.A. Mehta, JJ.

IT Ref. No. 144 of 1986

23rd July, 2001

Counsel Appeared

Manish R. Bhatt for the Revenue : Manish Kaji, for K.H. Kaji, for the Assessee

JUDGMENT

A.R. Dave, J. :

At the instance of the Revenue, the following question has been referred to this Court by the Tribunal, Ahmedabad Bench “A”, for its opinion under the provisions of s. 256(1) of the IT Act, 1961 (hereinafter referred to as “the Act”).

“Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in coming to the conclusion that the ITO had no jurisdiction to pass an order of rectification under s. 154 r/w s. 155(7A) of the IT Act, 1961, in relation to the asst. yr. 1972-73?”

We have heard learned advocate Shri Akil Kureshi, for the applicant and learned advocate Shri Manish Kaji for the respondent-assessee. Looking to the fact that the provisions of s. 155(7A) of the Act had been inserted by the Finance Act, 1978, with retrospective effect from 1st April, 1974, in our opinion, the ITO had no jurisdiction to invoke the provisions of the said section for the asst. yr. 1972-73. In view of the said fact the Tribunal was justified in coming to the conclusion that the ITO had no jurisdiction to pass the order of rectification under the provisions of s. 154 r/w s. 155(7A) of the Act.

For the above referred reasons, we answer the question in the affirmative, i.e., in favour of the assessee and against the Revenue.

The reference stands disposed of accordingly with no order as to costs.

[Citation : 252 ITR 718]

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