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Issues:
Challenge to notice under section 263 of the Income-tax Act, 1961 regarding rebate on export sales and export profits, Applicability of rebate on surcharge as per Finance Act, 1965, Revisional jurisdiction of the Commissioner under section 263, Independence of order passed by Income-tax Officer to implement Appellate Assistant Commissioner's direction, Possibility of the order being subject to appeal, Relevant case laws. Analysis: The petitioner, a public limited company engaged in the manufacture and sale of aluminium utensils, challenged a notice issued under section 263 of the Income-tax Act, 1961, regarding the allowance of rebate on export sales and profits. The Appellate Assistant Commissioner directed the Income-tax Officer to grant the necessary rebate on export sales and surcharge as per the Finance Act, 1965. The Income-tax Officer's subsequent order implementing the directions led to a dispute. The Commissioner observed errors in the Income-tax Officer's order and proposed to set it aside for a fresh assessment. The petitioner argued that the Income-tax Officer's order was part of the Appellate Assistant Commissioner's order and thus not subject to revision under section 263. However, the court held that the Income-tax Officer's order was independent, as it was passed to implement the directions and not as part of the appellate order. The court referred to relevant case laws to support this interpretation. The court emphasized that the Income-tax Officer's order, though based on the Appellate Assistant Commissioner's directions, was an independent order and could be revised by the Commissioner under section 263. The petitioner's contention that the order was part of the appellate order was rejected. The court highlighted that the order could also be subject to appeal, citing relevant case laws to support this position. The judgment underscored the distinction between the Appellate Assistant Commissioner's order and the Income-tax Officer's order in terms of their independent legal existence. In conclusion, the court dismissed the petitioner's application, upholding the Commissioner's power to revise the Income-tax Officer's order under section 263. The court referred to Supreme Court decisions to support its stance. The judgment also noted that there would be no order as to costs and granted a stay of operation of the order for six weeks.
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