CIT Vs. RATILAL BACHARILAL & SONS

JUDGEMENT

(1.) BY this reference under section 256(1) of the Income Tax Act, 1961, the Tribunal has referred the following questions of law for the opinion of this court :

(2.) WHETHER , on the facts and in the circumstances of the case, the Tribunal was justified in holding that after an appeal was decided by the Commissioner (Appeals) against the assessment order, the assessment order merged in the order of the Commissioner (Appeals) and thereafter the CIT could not exercise his jurisdiction under section 263 of the Income Tax Act, 1961, for revising the assessment on the ground of its being erroneous and prejudicial to the interest of the revenue. Facts :

(3.) SUBSEQUENTLY , the CIT was of the view that the assessment order dated 23 -2 -1981 was erroneous and prejudicial to the interest of the revenue inasmuch as weighted deduction under section 36B was allowed on reassortment charges without going into the details of these charges and enquiry as to whether these charges were justified so as to allow weighted deduction under section 35B of the Act. The CIT, finding the order erroneous and prejudicial to the interest of the revenue, in exercise of his powers under section 263, by an order dated 11 -1 -1983, set aside the assessment order dated 23 -2 -1981 with respect to the claim made by the assessee for weighted deduction under section 35B and remanded the assessment proceeding to the Income Tax Officer with direction to make the assessment afresh, keeping in view his observations made in the order, after giving sufficient opportunity to the assessee to meet its case before completing the assessment.