Ajjt K.Sengupta, J. - (1.) At the instance of the Commissioner of Income-tax, the following question of law has been referred to this court under Section 256(1) of the Income-tax Act, 1961, for the assessment year 1964-65 : "Whether, on the facts and in the circumstances of the case, the Tribunal was correct in its finding that the order passed by the Income-tax Officer under Section 154 on April 5, 1979, was barred by limitation ?"
(2.) The facts shortly stated are that, in the assessment for the assessment year 1964-65, there was a mistake in not charging additional tax on dividend distributed during the previous year ended December 31, 1963 (Rs. 5,62,000) by way of reduction in rebate of super tax in terms of the provisions of the Finance Act, 1964. Since the mistake was apparent from the record, the Income-tax Officer issued a notice under Section 154 dated March 19, 1979, for rectification of the order passed to give effect to the order made by the Tribunal under Section 254 of the Act on July 18, 1975, wherein the aforesaid mistake was committed. Accordingly, he passed the order under Section 154 on April 5, 1979.
(3.) Being aggrieved by the order of rectification dated April 5, 1979, the assessee-company went in appeal to the Commissioner of Income-tax (Appeals) and took the ground that the order of rectification dated April 5, 1979, was bad inasmuch as it was barred by limitation. The Commissioner of Income-tax (Appeals) agreed with the assessee's counsel that the mistake had been committed in the original order and that the limitation started running from the date of the original order and the assessee's filing an appeal would not extend the Income-tax Officer's date of rectification of mistake allegedly made in the original order. The Commissioner of Income-tax (Appeals) held that the order of rectification dated April 5, 1979, was barred by limitation and the merits of the matter were not discussed.;