PRAKASH CHITRA Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) HEARD learned counsel for the parties.

(2.) THE petitioner challenges the continuance of the proceedings of assessment in pursuance of the order passed by the Commissioner of Income Tax under Section 263 of the Income Tax Act, 1961 on 20th February, 1998 which order stood set aside by the Tribunal in appeal on 18th May, 1998.

(3.) THE Commissioner in exercise of his powers under Section 263 initiated the proceedings and held that the assessment order to be erroneous and prejudicial to the interest of the revenue and accordingly set aside the same and directed the Income Tax Officer to make a fresh assessment. In pursuance of that order the Assessing Officer issued notice on 26.2,98. However, before any order could be made in pursuance of order of CIT on appeal by the petitioner the order of the Commissioner was set aside by the Tribunal by its order dated 18th May, 1998 in ITA No. 106/JDPR/1998. A reference application preferred by the Commissioner of Income Tax under Section 256(1) was also rejected in September, 1998. An application to require the Tribunal to state the case and refer the proposed question of law to this Court u/S. 256(2) of the Act of 1961 is stated to be pending before this Court.