COMMISSIONER OF INCOME TAX Vs. FARIDA PRIME TANNERY

JUDGEMENT

(1.) THE only question that falls for consideration in the reference is whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the Commissioner of Income-tax had no jurisdiction under Section 263 of the Income-tax Act, 1961, to revise the assessment for the year 1980-81.

(2.) THE assessment proceedings were taken against the assessee and the assessment was completed by the Income-tax Officer. It seems, against that assessment order there was an appeal filed before the Commissioner of Income-tax (Appeals) on the question of admissible deduction under Sections 353, 80J and 80HH of the Income-tax Act. THEre is no dispute that the Commissioner of Income-tax (Appeals) considered all the questions and disposed of the appeal by his order dated August 4, 1984. However, the Commissioner of Income-tax, on the other hand, felt that the deductions were not proper under Sections 80J and 80HH as also under Section 35B of the Income-tax Act. He therefore directed an action under Section 263 of the Act. He corrected the order passed by the Income-tax Officer in his revisional jurisdiction. THE Appellate Tribunal, however, realised that against the order of assessment passed by the Income-tax Officer, there was already an appeal and the appeal was also on the same issues on which the revision under Section 263 was initiated by the Commissioner of Income-tax. In that view, the Appellate Tribunal set aside the order of the Commissioner of Income-tax passed in his revisional jurisdiction. It is how the matter has come up before us at the instance of the Revenue on the question mentioned above.