M/S. MEPCO INDUSTRIES LTD. MADURAI versus COMMISSIONER OF INCOME TAX & ANR.

M/S. MEPCO INDUSTRIES LTD. MADURAI versus COMMISSIONER OF INCOME TAX & ANR.

Section 154 of the Income Tax Act, 1961, cannot be invoked to rectify an order based on a subsequent change of opinion or law on the nature of subsidy receipts, where the issue requires detailed factual examination and is not a patent mistake apparent from the record.

Parties
Appellant: MEPCO Industries Ltd. Madurai; Respondents: Commissioner of Income Tax & Anr.
Jurisdiction
India
Judgment Date
19 November 2009
Procedural Posture
Civil Appeal / Appeal From High Court Judgment
Outcome
Appeals allowed
Legal Topics
Rectification of Mistake Apparent From the Record, Nature of Subsidy Receipts (capital/revenue), Section 154 of Income Tax Act, 1961
Income Tax Rectification of Mistake Apparent From the Record Nature of Subsidy Receipts (capital/revenue) Section 154 of Income Tax Act, 1961

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Parties

MEPCO Industries Ltd. Madurai

Appellant

Commissioner of Income Tax & Anr.

Respondents

Procedural Posture

Civil Appeal / Appeal From High Court Judgment

Legal Issues

  1. 1 Whether rectification of assessment order under Section 154 of the Income Tax Act, 1961, was permissible on the basis of a subsequent Supreme Court judgment regarding the nature of subsidy receipts.

Ratio Decidendi

Section 154 of the Income Tax Act, 1961, cannot be invoked to rectify an order based on a subsequent change of opinion or law on the nature of subsidy receipts, where the issue requires detailed factual examination and is not a patent mistake apparent from the record.

Court Disposition

Appeals allowed

Orders

  • Impugned High Court judgment set aside
  • No order as to costs