COMMISSIONER OF INCOME TAX Vs. CHIDAMBARAM CONSTRUCTION CO

JUDGEMENT

(1.) THE question referred is,

(2.) A summary assessment was made under Section 143(1) of the IT Act which was revised by the CIT under Section 263 of the Act. The CIT held that the assesses was not entitled to deduction of a sum of Rs. 31,396 under Section 80HH of the Act, and that there was a Revenue loss of Rs. 31,396. The CIT was thus of the view that the order of assessment was erroneous and was prejudicial to the Revenue. The Tribunal set aside the order of the CIT on the sole ground that the assessment made under Section 143(1) of the Act is not revisable under Section 263 of the Act.

(3.) LEARNED counsel for the assessee placed reliance on the decision of the Madhya Pradesh High Court in the case of Nazir Singh vs. CIT (2001) 252 ITR 820 (MP) wherein, it has been held that circular of the Director of Inspection binds all IT authorities. With great respect, we are unable to agree, as we are unable to read that circular issued by the Director as a circular issued by the Board in exercise of it's powers under Section 119 of the Act.