COMMISSIONER OF INCOME-TAX Vs. KANDA RICE MILLS

JUDGEMENT

(1.) FOR the assessment year 1979-80, the Income-tax Officer completed the assessment on March 19, 1982. The Commissioner of Income-tax called for the record of the case and found that the business loss of Rs. 30,000 was determined, after adjusting deductions under Section 80j of the Income-tax Act, 1961, (for short "the Act"), and was allowed to be carried forward. He also took note of certain other infirmities and issued notice under Section 263 of the Act. By order dated March 5, 1984, the assessment made by the Income-tax Officer was set aside with a direction to make fresh assessment oh re-examining the points contained in paras 7 to 10 of his order. The assessee challenged the order in appeal and the Income-tax Appellate Tribunal, Chandigarh, came to the conclusion that no firm conclusions were arrived at by the Commissioner in revisional jurisdiction, and therefore, it could not be said that the assessment made by the Income-tax Officer was erroneous and that was one of the prerequisites for revisional jurisdiction. As a result, the appeal was allowed and the order of the Commissioner of Income-tax was set aside. On these facts, the Tribunal has referred the following question for the opinion of this court at the instance of the Revenue :

(2.) WE have gone through the order of the Commissioner. In para 7, the contention on behalf of the assessee to the effect that the business of dehusking of paddy was a manufacturing process and three judgments of the Supreme Court cited in this behalf were noticed and the conclusion of the Commissioner was as follows :

(3.) IN para 8, the default of not filing a report prescribed under Sub-section (6a) of Section 80j of the Act along with the return was noticed. Learned counsel for the assessee had offered to file the same at that stage. The Commissioner left the matter undecided with the following observations :