COMMISSIONER OF INCOM 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 : While framing the assessment for the assessment year 1975-76, the I. T. O. called upon the assessee to prove genuineness of his cash credits in different names in the accounts of the assessee. The assessee produced confirmatory letters from creditors which were accepted by the I. T. O. Aggrieved by a part of the order passed by the I. T. O. , the assessee preferred an appeal before the A. A. C. which was decided on 1-6-1978. Therefore, the Commissioner, in exercise of powers conferred by Section 263 of the act, set aside the order of assessment and directed the I. T. O. , to make a fresh 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 I. T. O. got merged with the order of the A. A. C. and the Commissioner had no jurisdiction to revise it under Section 263 of the Act. Aggrieved by that order, the revenue sought 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.) WHEN the reference came up for hearing before a Division Bench of this Court on 1-2-1985, the D. B. directed that the reference be heard along with M. C. C. No. 99/80 which was to be heard by a larger Bench and where a similar question was referred to this Court for its opinion.