COMMISSIONER OF INCOME TAX Vs. SOBLE & MIGLANI

JUDGEMENT

(1.) THE Tribunal, Delhi, referred the following question of law under s. 256(1) of the IT Act, 1961, hereinafter referred to as 'the Act' for opinion to this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in cancelling the order of the CIT passed under s. 263 of the Act treating it as without jurisdiction -

(2.) THE reference relates to the asst. yr. 1978 -79. The assessment for the asst. yr. 1978 -79 was completed on 27th not been the subject -matter of appeal, was prejudicial to the interest of the Revenue. He initiated the proceedings under s. 263 of the Act and after giving opportunity of hearing to the assessee had set aside the assessment order with the direction to the ITO to pass afresh assessment order. Feeling aggrieved by the aforesaid order, the assessee preferred an appeal before the Tribunal. The Tribunal relying upon the decision of this Court in the case of J.K. Synthetics Ltd. vs. Addl. CIT & Anr. (1976) 105 ITR 344 (All) quashed the order passed under s. 263 of the Act on the ground that the assessment order has got merged in the appellate order, therefore, the assessment order could not have been revised under s. 263 of the Act. Heard Sri A.N. Mahajan, learned standing counsel appearing for the Revenue. Nobody has appeared for the assessee.

(3.) IT may be mentioned here that cl. (c) of the Explanation to s. 263(1) of the Act has been amended by the Finance deemed always to have extended" have been inserted therein.