COMMISSIONER OF INCOME TAX Vs. T P ASRANI

JUDGEMENT

(1.) This appeal by certificate of fitness granted by the Bombay High Court u/s. 261 of the Income-tax Act, 1961 (the Act), is directed against the judgment of the said High Court, dated 16.1.1979, in IT Reference No. 25 of 1970.

(2.) The facts briefly stated are as follows :

(3.) Agreeing with the Tribunal, the High Court held that sec. 297(2)(d)(ii) was not applicable since the order of the Tribunal was passed under the provisions of the Indian Income-tax Act, 1922 and that Explanation 2 to sec. 153(3) could not be pressed into service. The said view of the High Court is no longer good law in view of the decision of this Court in Mahadeo Prasad Rais V/s. ITO, 1991 192 ITR 402. In that case this Court has construed the provisions of sec. 297(2)(d)(ii) and sec. 297(2)(k) of the Act in the context of sec. 150(1) of the Act and has held that sec. 150(1) would be applicable in respect of the orders passed by the Tribunal under the 1922 Act, on a liberal interpretation of sec. 297(2)(d)(ii) and sec. 297(2)(k) of the 1961 Act. In that case this Court has taken note of the impugned judgment of the High Court as well as the judgments of the Allahabad, Calcutta and Bombay High Courts wherein a contrary view was taken and has affirmed the judgment of the Allahabad High Court. The present case is fully covered by the judgment of this Court in Mahadeo Prasad Rais case (supra). For the reasons given in the said judgment the appeal is allowed, the impugned judgment of the High Court is set aside and the question referred, as reframed by the High Court, is answered in the negative, i.e., in favour of the revenue and against the assessee. No order as to costs.