GUPTA AGRO FARM Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THIS is an application under Article 226 of the Constitution of India arising out of an order dated January 19, 1998, passed by the Commissioner of Income -tax, North Eastern Region, Shil -long, proposing to take action under Section 263 of the Income -tax Act, 1961.

(2.) FOR the assessment years 1994 -95 and 1995 -96 assessment orders were passed by the Assessing Officer under Section 143(3) of the Act. The Commissioner of Income -tax by his earlier order dated February 21, 1997, in exercise of his power under Section 263 of the Act set aside the assessment orders for the assessment years 1994 -95 and 1995 -96 with a direction to recompute the same as per law after carrying out thorough investigation on the agricultural income as directed in the said order. The Assessing Officer thereafter passed two assessment orders for the assessment years mentioned above and completed the assessment. The Commissioner of Income -tax thereafter issued the impugned notice proposing to exercise his power under Section 263 of the Act to set aside the order on the ground that the Assessing Officer failed to direct himself to the directions contained in the earlier order. The above order is under challenge before this court.

(3.) MR . U. Bhuyan, learned counsel for the Revenue, on the other hand, submitted that the impugned notice was issued by the respondents in exercise of power conferred by the Act itself and there is no excess of jurisdiction or failure of jurisdiction. Mr. Bhuyan also submitted that the impugned order only asked the petitioner to show cause as to why the power under Section 263 should not be exercised and the petitioner was advised to submit a written statement and to appear for hearing. It was for the petitioner to avail of that opportunity for passing necessary order.