9911796707
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Issues involved:
The judgment addresses the jurisdiction of the Commissioner of Income-tax to pass orders under section 263 of the Income Tax Act, 1961. Summary: In the assessment case of the year 1979-80, weighted deduction under section 35B was allowed for three items but disallowed for "export freight." The Commissioner of Income-tax initiated revisional proceedings under section 263, claiming that weighted deduction was wrongly allowed for items such as foreign traveling, export service charges, and export commission. The Tribunal, after a difference of opinion, concluded that the Commissioner lacked jurisdiction under section 263 as the assessing officer's order had merged in the appellate order. The Revenue relied on the Supreme Court decision in CIT v. Shri Arbuda Mills Ltd. [1998] 231 ITR 50, emphasizing the addition of Explanation (c) to section 263 to empower the revisional authority. The assessee argued that the appellate authority could have withdrawn the weighted deduction for the remaining items, thus the revisional powers were unnecessary. However, the court held that Explanation (c) extended the revisional authority's powers to matters not considered in the appeal, aligning with the Supreme Court's decision in Shri Arbuda Mills Ltd. [1998] 231 ITR 50. The judgment concluded in favor of the Revenue, stating that the revisional authority's powers are co-extensive with the appellate authority's, as per Explanation (c) to section 263. The references were disposed of with no costs incurred.
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