RAJESH MAHESHWARI Vs. ASSISTANT COMMISSIONER OF INCOME-TAX

JUDGEMENT

(1.) THE present appeal preferred under Section 260A of the Income -tax Act, 1961 (in short 'the Act'), involves the following substantial question of law: Whether, in the facts and circumstances of the case, the Income -tax Appellate Tribunal has committed illegality by failing to consider all material facts and evidence brought on record and further failed to record the finding on all the issues before it and has erroneously remanded the matter to the Commissioner of Income -tax (Appeals) though it was obligatory on the part of the Tribunal to decide the matter being the final authority of facts.

(2.) THE facts which are essential to be stated are that for the assessment year 1998 -99, the assessment was reopened under Section 147 of the Act and notice under Section 148 of the Act was served by affixture on the last date of the period of limitation, i.e., on March 31, 2005. In pursuance of the notice, the appellant filed its regular return before the Income -tax Officer, Ward 1(1) who had the territorial jurisdiction over the place where the assessee was residing. In the course of the assessment proceeding, the assessee filed objection against the assessment proceeding as also against the jurisdiction of respondent No. 1, the Assistant Commissioner of Income -tax 2(1), Jabalpur. Those objections were not accepted by the Assessing Officer who framed the assessment under Section 147 of the Act on May 9, 2006.

(3.) BEING aggrieved by the order of the Commissioner of Income -tax (Appeals), the Revenue went in appeal before the Income -tax Appellate Tribunal (in short 'the Tribunal'). The assessee in support of the order passed by the Commissioner of Income -tax (Appeals) filed a cross -objection. The case of the assessee was that the Revenue did not file any appeal against the deletion of Rs. 17,50,900 which was made on account of the refund issued to M/s. Valabh Refractories. It was contended that the Department had accepted the order of the Commissioner 'of Income -tax (Appeals) in so far as the deletion is concerned and, therefore, the Revenue could not have challenged the other addition which was not the basis of the reopening.