GOVINDRAM SEKSARIA CHARITY TRUST Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) THIS is a petition under Art. 226/227 of the Constitution of India.

(2.) THE material facts giving rise to this petition, briefly, are as follows : The petitioner is a public charitable trust. While framing the assessment of the petitioner under the INCOME TAX ACT, 1961 (hereinafter referred to as " the Act "), for the asst. yrs. 1973 -74, 1975 -76, 1976 -77 and 1977 -78, respondent No. 1, the ITO, held that the petitioner was entitled to exemption under S. 11 of the Act. In exercise of revisional jurisdiction under S. 263 of the Act, the CIT set aside the order of assessment passed by the ITO and directed the ITO to make fresh assessment. Aggrieved by that order, the petitioner preferred an appeal before the Tribunal. The Tribunal allowed the appeal and set aside the order passed by the CIT. The petitioner contends that even though the Tribunal had set aside the order passed by the CIT, respondent No. 1 proceeded to assess the petitioner afresh and issued four draft assessment orders in accordance with the provisions of S. 144B of the Act. The contention raised on behalf of the petitioner, that the order of the CIT directing the ITO to make fresh assessments was set aside by the Tribunal and hence the ITO had no jurisdiction to proceed to make the assessment afresh, was rejected by respondent No. 1 on the ground that the Revenue had not accepted the order passed by the Tribunal. The petitioner contends that the action of the respondent in pursuance of the order passed by the CIT, even though that order has been set aside, is without jurisdiction and deserves to be quashed.

(3.) FOR all these reasons, this petition is allowed. The notice, annexure X, and the draft assessment orders, annexures XII, XIII, XIV and XV, are all quashed. In the circumstances of the case, parties shall bear their own costs of this petition. Security amount, if any, be refunded to the petitioner.