COMMISSIONER OF INCOME TAX Vs. S KHUSHAL SINGH

JUDGEMENT

(1.) ON application under section 256 (1) of the Income Tax Act, 1961 (for short 'the Act'), registered as RA No. 16/ind/88, for the Assessment Year 1979-80, the Tribunal stated the case and referred the under noted question of law for our opinion with reference to the order passed in ITA No. 978/ind/84 :

(2.) FACTS lie in a narrow compass. The year of assessment is 1979-80. The assessment was framed in the status of individual. It was framed in accordance with the directions of the IAC under section 144-B of the Act. The Commissioner of Income Tax considered the said order erroneous and prejudicial to the interest of the revenue. He, therefore, initiated proceedings under section 263 of the Act and directed the ITO to include the amount of interest of Rs. 1,12,304. 00 in the taxable income of the assessee. He also directed the ITO to verily as to whether the court expenses of Rs. 18,858. 00 should be added to the taxable income (Annexure 'a' ). The assessee then filed the appeal before the Tribunal and took the objections that the ITO having framed the assessment order in conformity with the directions of the IAC under section 144-B of the Act, the Commissioner of Income Tax was not competent to resort to section 263 as the order tantamounted in substance to that of the IAC. The Tribunal upheld the objections of the assessee and held that the Commissioner of Income Tax had no jurisdiction to revise the assessment order under section 263 (Annexure 'b' ). The Tribunal, therefore, allowed the appeal in part. Aggrieved, the applicant/revenue filed the application under section 256 (1) of the Act. On that application, the Tribunal stated the case and referred the aforesaid question of law for our opinion.

(3.) WE have heard Shri D. D. Vyas, learned counsel for the applicant/revenue. None appeared for the non-applicant/assessee.