INCOME TAX OFFICER Vs. TRAVANCORE RAYONS LIMITED

JUDGEMENT

(1.) THESE two writ appeals are by the ITO, A-Ward, Company Circle, Ernakulam, and the CIT and raise the same question. Broadly stated, the question is whether the power of rectification of the assessment under Rule 8 of the Tax Credit Certificate (Corporation Tax) Scheme, 1966, had been properly exercised or not That rule allows the rectification of the assessment to be made on the ground of a mistake apparent from the record.

(2.) IN the cases before us, the assessment years with which we are concerned are 1967-68 and 1968-69. The assessee is a company whose income is derived from the manufacture and sale of yarn, cellulose film and other commercial products. For the years in question it had made an application for the issue of a tax credit certificate under Section 280ZB of the I.T. Act. That section, in so far as it is material, reads :

(3.) THE entry under the Industries (Development and Regulation) Act, 1951, with respect to which rebate or deduction was claimed by the assessee was entry 24 of the First Schedule, which reads as follows :