COMMISSIONER OF INCOME TAX Vs. DIGVIJAY TRADERS.

JUDGEMENT

(1.) S . B. SAKRIKAR, J. : This order governs the disposal of the aforesaid connected MCCs arising out of common order dt. 15th July, 1991 passed by the Tribunal in reference application Nos. 60 to 63/Ind/91 arising out of common order passed in ITA Nos. 538 to 540/Ind/89 and ITA No. 494/Ind/88, on 13th Dec., 1990.

(2.) THE applicant/Department in all the aforesaid cases filed the application under s. 256(2) of the IT Act, 1961 (for short, the Act) seeking direction of this Court to refer the undernoted question said to be of law for the opinion of this Court : "Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in setting aside the order of the CIT made under s. 263 when there was adequate material as per the CITs order under s. 263 indicating that the order passed by the IAC was prejudicial to the interests of Revenue -

(3.) THE assessment was completed by the AO in the status of URF. The loose papers seized further indicated that the assessee had incurred certain expenses which had been considered by the AO and he had also not investigated the sources from which these expenses were met out by the assessee. The CIT came to the conclusion that the assessment made by the IAC was erroneous and prejudicial to the interests of the Revenue. The CIT after giving opportunity to the assessee passed an order under s. 263 and cancelled the assessment order for de novo assessment.