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Issues involved: Assessment orders challenged u/s 263 of Income-tax Act, 1961; Jurisdiction of Commissioner of Income-tax; Delay in filing appeals; Entitlement to relief.
Assessment Orders Challenged u/s 263: The petitioner, a registered firm, challenged assessment orders for 1972-73, 1973-74, and 1974-75 due to discrepancies in gross profit estimation by Income-tax Officer. Appellate Assistant Commissioner granted relief, but Commissioner of Income-tax set aside orders u/s 263, directing fresh assessments. Petitioner's subsequent appeals dismissed by Commissioner of Income-tax (Appeals), leading to Tribunal filing. Jurisdiction of Commissioner of Income-tax: Petitioner contended that Commissioner's exercise of powers u/s 263 was without jurisdiction as orders were already modified by Appellate Assistant Commissioner. Legal analysis revealed that revisional powers could only be invoked if Income-tax Officer's order was erroneous and prejudicial to Revenue, not when already modified by appellate authority. Commissioner's actions were deemed null and void. Delay in Filing Appeals: Tribunal dismissed appeals against Commissioner's orders u/s 263 due to delay in filing, despite petitioner's argument for condonation based on jurisdictional error. Tribunal's technical stance criticized, emphasizing the need to consider jurisdictional issues over procedural delays. Division Bench precedent highlighted the importance of jurisdictional boundaries in such cases. Entitlement to Relief: Considering the jurisdictional error by the Commissioner and the technical dismissal of appeals by the Tribunal, the High Court found in favor of the petitioner. Despite the availability of alternate remedies, the Court granted relief due to the prolonged pendency of the case, the small size of the petitioner, and the clear lack of jurisdiction in the Commissioner's actions. The petition was upheld, assessment orders were maintained, and no costs were awarded.
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