PRINCIPAL COMMISSIONER OF INCOME TAX, HAVING OFFICE AT AAYAKAR BHAVAN, PATTO - PLAZA, PANAJI - GOA Vs. RAMCHANDRA NAIDU PROP M/S SHAKTI SALES CORPORATION BELGAUM BYPASS ROAD, PONDA, GOA

JUDGEMENT

(1.) Heard Ms. A. Razaq, learned advocate for the appellant and Shri D. E. Robinson, learned advocate for the respondent.

(2.) The above appeal challenges the Order dated 28/11/2014 passed by the Income Tax Appellate Tribunal, Panaji (ITAT, for short) in Income Tax Appeal no.47/PNJ/2013 for the Assessment Year 2009-10 whereby the appeal preferred by the assessee came to be allowed.

(3.) Briefly, the case of the appellant was that the respondents filed a return of income for the Assessment Year 2009-2010 declaring total income of Rs. 1,08,24,020/-. The Assessing Officer by an order dated 25/11/2011 completed the assessment by making addition under various heads such as vehicle expenses, deprecation of motor car etc. and adjusted the refund towards the arrears for Assessment Year 2005-06. Thereafter, on 17/12/2012, exercising the powers under Section 263 of the Income Tax Act, 1961 (The Act, for short) the Commissioner of Income Tax found that the order passed by the Assessing Officer was erroneous and prejudicial to the interest of the Revenue and, as such, set aside the assessment order by restoring the matter to the file of the Assessing Officer afresh for passing a fresh assessment order. The ITAT by an order dated 28/11/2014 allowed the appeal holding that the Commissioner of Income Tax had no jurisdiction to take action under Section 263 of the Act taking the view that the order passed by the Assessing Officer is not erroneous or prejudicial to the interest of the Revenue and against the said order the above appeal came to be filed.