COMMISSIONER OF INCOME TAX Vs. ANARDEI DEVI

JUDGEMENT

(1.) THIS is a reference under Section 256(1) of the Income-tax Act, 1961 (hereinafter to be referred as "the Act"), at the instance of the Revenue. In this reference, we are concerned with the assessment year 1968-69. The history of this case is more important than the point referred to us for our consideration.

(2.) THE Central Board of Direct Taxes came out with a scheme to see that assessments were completed quickly. THEre was, however, a reservation in the scheme in regard to the assessment of minors and ladies. In regard to them, it was stated that the assessment was not to be done in terms of Section 143(1) of the Act. Assessment of ladies and minors has to be done effectively after proper enquiry. THE Income-tax Officer, however, assessed the assessee in terms of the scheme under Section 143(1) of the Act. THE assessments were made for the assessments years 196S-69 to 1973-74. THE Commissioner of Income-tax, finding that the assessments of the assessee were against the law and against the scheme propounded by the Central Board of Direct Taxes, set aside the orders of assessment and remanded the matter to the Income-tax Officer for fresh enquiry and for fresh assessments in terms of Section 143(3) of the Act. THE assessee, being aggrieved by the order of the Commissioner passed under Section 263 of the Act, appealed to the Income-tax Appellate Tribunal. While the appeal was pending before the Tribunal, the Income-tax Officer, in pursuance of the orders of the Commissioner under Section 263( 1) of the Act, passed fresh assessment orders adding certain sums as income of the assessee. THE assessee, being aggrieved by the second order of assessment by the Income-tax Officer, filed an appeal before the Appellate Assistant Commissioner of Income-tax. Before the appeal could be disposed of by the Appellate Assistant Commissioner, the Tribunal allowed the appeal of the assessee against the order of the Commissioner. THE order of the Tribunal having been passed in favour of the assessee, the Appellate Assistant Commissioner, while hearing the appeal against the quantum assessment, allowed it on the ground that the Commissioner's order had been set aside by the Tribunal.