COMMISSIONER OF INCOME TAX Vs. KAILASH CHAND METHI

JUDGEMENT

(1.) This appeal under s. 260A of the I.T. Act, 1961 (for short, "I.T. Act") has been preferred by the appellant-Revenue against the order of the Tribunal dt. 28th July, 2011 passed in ITA No. 2191/Jp/2011 by which the Tribunal has allowed the appeal filed by the respondent-assessee against the order of the CIT, Kota. The relevant assessment year is the asst. yr. 2006-07. The brief facts, as emerging on the face of record, are that the respondent-assessee submitted a return of income for the asst. yr. 2006-07 on 30th Oct., 2006 declaring an income of Rs. 2,32,969. An assessment under s. 143(3) of the I.T. Act came to be made by the AO wherein the income was computed and assessed at Rs. 6,81,500 vide order dt. 30th Sept., 2008 after analyzing various claims made by the respondent-assessee. It is apparent that an addition of about Rs. 4,50,000 was made by the AO.

(2.) Aggrieved by the said order, the assessee filed an appeal before the CIT(A), who, after analyzing the grounds raised by the respondent-assessee, partly allowed the appeal of the respondent-assessee vide order dt. 19th March, 2010. It appears that the said order became final and neither the respondent-assessee nor the appellant-Revenue preferred appeal before the Tribunal.

(3.) The CIT (Administration), Kota, having powers of revision, issued a show-cause notice under s. 263 of the I.T. Act on 29th Oct., 2009 on the premise that the order passed by the AO on 30th Sept., 2008 was erroneous insofar as it is prejudicial to the interest of the appellant-Revenue.