COMMISSIONER OF INCOME TAX Vs. MADANLAL AND CO

JUDGEMENT

(1.) IN respect of the assessment year 1978-79, the following two question have been referred under section 256(1) of the INcome-tax Act, 1961 ("the Act", for short) :

(2.) THE assessee was carrying on his business at Bombay and an order of assessment came to be passed by the Income-tax Officer, D-II Ward, Bombay. THE assessee appealed. THE appeal was considered by the Commissioner of Income-tax (Appeals) - II, Bangalore; the statement of the case sent by the Appellate Tribunal states that "the appeal preferred to the first appellate authority had been transferred to Bangalore and the same was disposed of by the Commissioner of Income-tax (Appeals - II), Bangalore, by order dated September 2, 1985". THE assessee thereafter filed the further appeal before the Appellate Tribunal at Bangalore. THE Appellate Tribunal upheld the assessee's claim for weighted deduction under section 35B, following a decision of the Bombay High Court reported in CIT v. Eldee Wire Ropes Ltd. [1978] 114 ITR 485. THE decision of this High Court in Ullalnarayan Mallya's case [1976] 1 KLJ 487 was distinguished. Hence, this reference at the instance of the Revenue.

(3.) THE "further proceedings" referred to in the above observation pertain to the further proceedings that may be instituted by the Income-tax Officer. THE Supreme Court nowhere held that on transfer of the case, all further proceedings including appellate and reference proceedings also get transferred. THE proceedings which could be initiated by an Income-tax Officer in respect of the particular assessee, thereafter, has to be initiated by the "transferee-officer".