R.K. Gulati, J. - (1.) This is an application under Sub-section (2) of Section 256 of the Income-tax Act, 1961, at the instance of the Revenue. The only question that was canvassed before the tax authorities was whether the proceedings under Section 154 of the Act were barred by time. The Tribunal has held in the affirmative. The Tribunal has also rejected the application under Section 256(1) of the Act. Hence, this application has been made.
(2.) The initial assessment order was passed on March 31, 1982. That assessment order was, admittedly, rectified by an order dated May 26, 1982. The assessment order was rectified for the second time on May 22, 1986. It is this rectification order which is the subject-matter of the controversy in the present application.
(3.) According to the assessee, in terms of Sub-section (7) of Section 154 of the Act, the rectification could not have been made after March 31, 1986, i.e., beyond the period of four years from the end of the financial year in which the assessment order was passed. As to what would be the effect of the first rectification order, i.e., dated May 26, 1982, and whether it would extend the period of limitation for the purposes of Sub-section (7) of Section 154 a're questions that may require consideration of this court. In our opinion, the question of law as set out below does arise from the order of the Income-tax Appellate Tribunal : "Whether the Income-tax Appellate Tribunal was legally correct in holding that the rectification order passed on May 22, 1986, in respect of relief allowed under- Section 80J in the original assessment was barred by limitation ?";