2002 (11) TMI 35 - HC - Income Tax

Whether the Appellate Tribunal was justified in cancelling the order passed by the Commissioner of Income-tax under section 263 of the Income-tax Act 1961 in view of Circular No. 176 dated August 26 1987 of the Central Board of Direct Taxes? - Accordingly we answer the question in the negative in favour of the Revenue and against the assessee. The result is the Tribunal has to go into the question of merits of the case and decide the question as regards the merits of the claim of the assessee.

Summary

The High Court of Madras ruled that the Commissioner has jurisdiction to revise a summary assessment order under section 263 of the Income-tax Act, 1961. The Appellate Tribunal's decision to cancel the Commissioner's order was deemed legally unsustainable. The Tribunal was directed to reconsider the case on its merits.