COMMISSIONER OF INCOME TAX Vs. N SUNDARESWARAN

JUDGEMENT

(1.) AT the instance of the Revenue, the Tribunal has referred the following question of law for the decision of this Court :

(2.) THE respondent is an assessee to income-tax. We are concerned with the asst. yr. 1979-80. The ITO passed an order of assessment dt. 19th Jan., 1982, for the asst. yr. 1979-80, the accounting period ending by December 31, 1978, wherein he allowed a sum of Rs. 36,422 in excess of the maximum amount of bonus payable under the Payment of Bonus Act as also a sum of Rs. 8,870 as contingent liability for payment of leave with wages. The CIT initiated suo motu revision proceedings under s. 263 of the IT Act on January 7, 1984. The assessee objected to the said proceedings and contended that the order of assessment was taken in appeal and the AAC has passed an order dt. December 13, 1983, and so the assessment order sought to be revised had merged in the appellate order and so was not revisable. This plea was negatived by the CIT. But, in appeal, the Tribunal accepted the said plea and held that the order passed by the CIT in suo motu revision under s. 263 of the Act dt. January 7, 1984, is without jurisdiction. It is thereafter at the instance of the Revenue that the question of law formulated hereinabove has been referred for the decision of this Court.

(3.) IN the light of the above Bench decisions of this Court, we are of the view that the Tribunal was in error in holding that the order passed by the CIT under s. 263 of the IT Act, dt. January 7, 1984, is improper, illegal or unauthorised. We, therefore, answer the question referred to this Court in the affirmative, against the assessee and in favour of the Revenue.