COMMISSIONER OF INCOME TAX Vs. CANARA BANK

JUDGEMENT

(1.) This income-tax appeal is preferred by the Revenue against the common order dated January 31, 2007, passed by the Income-tax Appellate Tribunal Bangalore Bench "B" (for short "the Tribunal") in I.T.A. No. 73 of 2005 and I.T.A. No. 94 of 2005 pertaining to the assessment year 1999-2000. In the present case, we are concerned only with the order in I.T.A. No. 73 of 2005. The Tribunal partly allowed the appeal filed by the Revenue. The appeal before the Tribunal was directed against the order dated November 3, 2004, passed by the Commissioner of Income-tax (Appeals) (for short "the appellate authority") whereby the appellate authority set aside the order dated July 30, 2004, passed by the Assessing Officer under section 143(3) read with section 263 of the Income-tax Act 1961 (for short "the Act"). We have heard the learned counsel for the parties for some time and with their assistance, gone through the orders passed by the Tribunal and the authorities below.

(2.) When the appeal was admitted, vide order dated November 19, 2007, substantial questions of law were not formulated by this court. The substantial questions of law formulated in the memorandum of appeal read thus:

(3.) It appears, for the assessment year 1999-2000, the respondent-assessee, i.e., Canara Bank, filed a return of income on December 30, 1999. After processing the return under section 143(1)(a) of the Act, the case was selected for scrutiny and an order under section 143(3) was passed on March 28, 2002. Consequently, an order under section 263 was passed by the Commissioner of Income-tax, Bangalore, dated October 10, 2002. As per this order, the assessment under section 143(3) was set aside and the Assessing Officer was directed to redo the assessment on certain points indicated therein. Accordingly, notice under section 142(1) was issued to the assessee calling for specific details on the issues that find place in the order dated October 10, 2002, passed by the Commissioner of Income-tax, Bangalore, under section 263 of the Act. It is in this backdrop, the matter once again travelled before the Assessing Officer, the first appellate authority and then the Tribunal. The Revenue having lost before the first appellate authority and the Tribunal is before this court in appeal under section 260A of the Act raising the aforementioned substantial questions of law.