COMMISSIONER OF INCOME TAX Vs. SIMPLEX METALICA

JUDGEMENT

(1.) BY this reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter referred to as "the Act"), the Income-tax Appellate Tribunal, Jabalpur Bench, has referred the following question of law to this court for its opinion :

(2.) THE material facts giving rise to this reference briefly are as follows I While framing the assessment for the assessment year 1975-76, the Income-tax Officer called upon the assessee to prove the genuineness of nine cash credits in different names in the accounts of the assessee. THE assessee produced confirmatory letters from creditors which were accepted by the Income-tax Officer. Aggrieved by a part of the order passed by the Income-tax Officer, the assessee preferred an appeal before the Appellate Assistant Commissioner which was decided on June 1, 1978. THEreafter, the Commissioner in exercise of powers conferred by Section 263 of the Act, set aside the order of assessment according to law. Aggrieved by the order passed by the Commissioner, the assessee preferred an appeal before the Tribunal. THE Tribunal held that the order of the Income-tax Officer got merged with the order of the Appellate Assistant Commissioner and the Commissioner had no jurisdiction to revise it under Section 263 of the Act. Aggrieved by that order, the Revenue sought a reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion.

(3.) FOR reasons stated in our judgment delivered today in M.C.C. No. 99 of 1980 ([1987] 164 ITR 203), our answer to the question framed by us is in the affirmative and in favour of the assessee.