- (1.) - Special leave granted. Heard counsel on both sides.
(2.) What is challenged in these appeals is the decision of the Calcutta High Court interpreting the provision 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 September, 1979.
(3.) Shortly stated , facts are that the appellant-assessee was assessed for income-tax originally under the assessment order dated 21st September, 1979. The assesses 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 assessees. Consequent upon this application, the assessment order was rectified on 12th July, 1982. Thereafter, the assessees again applied for rectification of the fresh order of 12th July, 1982 on 4th July, 1986 contending 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 Appellate Assistant Commissioner. In the appeal, The Tribunal, however, allowed 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 not from the fresh order of assessment passed on 12th July, 1982.;