1984 (7) TMI 122 - AT - Income Tax

Summary

Issues:
- Jurisdiction of the Commissioner under section 263 to revise assessment orders passed by the IAC acting as the ITO under section 125A.
- Extending the retrospective operation of newly inserted section 80AA to reopen assessments already completed.

Jurisdiction of the Commissioner under section 263:
The judgment dealt with three appeals against the Commissioner's order under section 263 of the Income-tax Act, 1961. The common issue was the jurisdiction of the Commissioner to revise assessment orders passed by the IAC acting as the ITO under section 125A. The assessees argued that assessments by the IAC were not subject to revision and were valid under the existing law. The contention was that the Commissioner could not revise assessments completed by an officer other than the ITO. However, the Tribunal held that the IAC, acting as the ITO, could have their assessments revised by the Commissioner under section 263. The Tribunal emphasized that the IAC, as an ITO, falls within the scope of section 263, and the power to revise assessments is not limited to the ITO as a persona designata.

Retrospective operation of section 80AA:
Another issue in the judgment was whether the retrospective operation of the newly inserted section 80AA could be extended to reopen assessments already completed. The assessees contended that assessments completed before the insertion of section 80AA could not be reopened. However, the Tribunal disagreed, citing a case law precedent and holding that the retrospective effect of the amendment could justify rectifying mistakes in assessments. The Tribunal found no merit in the argument that assessments could not be reopened due to the retrospective operation of section 80AA.

In conclusion, the Tribunal dismissed the appeals, affirming the Commissioner's jurisdiction under section 263 to revise assessments by the IAC acting as the ITO under section 125A. Additionally, the Tribunal upheld the extension of the retrospective operation of section 80AA to reopen completed assessments. The Tribunal directed the ITO to finalize the assessments and implement any decision by the Supreme Court regarding the retrospective effect of section 80AA.