COMMISSIONER OF INCOME TAX Vs. VITHAL TEXTILES

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, Indore Bench, Indore, 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 :

(3.) FROM a perusal of the aforesaid provision, it is clear that the Commissioner has jurisdiction under Section 263 of the Act to revise an order if it is passed by the Income-tax Officer and if the Commissioner considers the order to be erroneous and prejudicial to the interests of the Revenue. The assessment order passed by the Income-tax Officer after giving effect to the directions given by the Inspecting Assistant Commissioner under Section 144B is still an order passed by the Income-tax Officer under Section 143(3) of the Act. Moreover, the Explanation, Clause (a), to Section 263(1) inserted by the Taxation Laws (Amendment) Act, 1984, with effect from October 1, 1984, makes the position very clear. That Explanation is as under :