Section 263, read with section 143, of the Income-tax Act,

Last updated: 02 April 2008

Court :
HIGH COURT OF ALLAHABAD

Brief :

Citation :
Commissioner of Income-tax, Agra v. V.P. Agarwal, Prop. Agarwal Scientific Glass Industry PRAKASH KRISHNA AND BHARATI SAPRU, JJ. IT REFERENCE NOS. 52 AND 100 OF 1994

HIGH COURT OF ALLAHABAD Commissioner of Income-tax, Agra v. V.P. Agarwal, Prop. Agarwal Scientific Glass Industry PRAKASH KRISHNA AND BHARATI SAPRU, JJ. IT REFERENCE NOS. 52 AND 100 OF 1994 September 17,2007 Section 263, read with section 143, of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue - Assessment year 1972-73 - For relevant year, Assessing Officer completed assessment of assessee - Against that Commissioner initiated action under section 263 on ground that assessment order was erroneous and prejudicial to interests of revenue - Thus, he set aside assessment order and restored matter to Assessing Officer for making fresh assessment -However, on assessee's appeal, vide order dated 31-12-1979, Tribunal set aside order of Commissioner - On reference at instance of revenue, High Court set aside Tribunal's order and restored that of Commissioner - Meanwhile, in pursuance of Commissioner's order under section 263, ITO framed fresh assessment order against assessee - On appeal, Commissioner (Appeals) annulled this fresh order on ground that order of Commissioner giving jurisdiction to Assessing Officer to make fresh assessment had been set aside by Tribunal on 31-12-1979 - Tribunal upheld order of Commissioner (Appeals) - Whether order of Tribunal dated 31-12-1979 having been set aside by High Court in an earlier reference application, order of Commissioner revived automatically with result that Assessing Officer had jurisdiction to pass fresh assessment order in pursuance thereof - Held, yes - Whether therefore, Tribunal was not justified in upholding order of Commissioner (Appeals) whereby he annulled fresh assessment order - Held, yes - Whether thus, matter was to be restored back to Commissioner (Appeals) to decide assessee's appeal against fresh assessment order, on merits - Held, yes