CIT Vs. CHANDRA ASSOCIATES

JUDGEMENT

(1.) Heard Shri R.L. Jain, learned counsel for the appellant, on the question of admission.

(2.) This appeal at the instance of the revenue has been preferred under section 260A of the Income Tax Act (hereinafter referred to as the Act) against the order dated 17-4-2001, passed by the Tribunal, whereby the order passed by the Commissioner, Bhopal, under section 263 of the Act has been set aside.

(3.) The assessment in this case was made by the Income Tax Officer Ward-II(1), Indore, vide order dated 19-12-1994, under section 143(3) of the Act of the firm known as M/s Chandra Associates, Dewas. After going through the assessment record, the Commissioner was of the opinion that the assessment was erroneous and prejudicial to the interest of the revenue. Thus, proceedings under section 263 of the Act were initiated against the assessee. It is said that the notice was served on the assessee. Thereafter, an ex parte order by the Commissioner Bhopal, was passed on 29-11-1996. In this order of Commissioner, Bhopal, the assessment of the assessee was set aside with the directions to assessing officer to make enquiry in the light of the directions, contained in the said order after giving opportunity of hearing to the assessee.