1982 (6) TMI 105 - AT - Income Tax

Summary

Issues:
1. Dispute regarding the granting of weighted deduction to the assessee under section 358 for salary, consultation fee, and expenses on foreign delegates.
2. Dispute over the deduction of Rs. 53,016 not allowed by the ITO but allowed by the CIT(Appeals).
3. Interpretation of sections 250 and 263 under the IT Act and their independence.

Analysis:
1. The appeal by the revenue challenges the CIT(Appeals) decision to grant weighted deduction to the assessee under section 358 for various expenses. However, the Tribunal noted that the assessment order in question had been set aside by the CIT under section 263, directing a fresh assessment by the ITO. The Tribunal found that the subsequent fresh assessment had been accepted by both the assessee and the revenue, rendering the current appeal baseless.

2. The dispute over the deduction of Rs. 53,016 involved the original assessment framed by the ITO, which was deemed erroneous by the CIT under section 263. The CIT's order set aside the assessment and directed a fresh assessment. The ITO complied with this direction and framed a new assessment. The Tribunal observed that the issues under consideration in the current appeal stemmed from the relief granted in the first appeal, which had been accepted by both parties.

3. The Tribunal addressed the argument put forth by the Departmental Representative regarding the independence of sections 250 and 263 under the IT Act. The representative contended that the CIT's order under section 263 only mentioned certain additions to be made in the assessment. However, the Tribunal found this argument to be without merit and concluded that the appeal by the revenue should be dismissed based on the circumstances and the accepted assessments.

In conclusion, the Tribunal dismissed the revenue's appeal, emphasizing the acceptance of the fresh assessments following the CIT's directions under section 263. The Tribunal found no basis for the revenue's challenge considering the actions taken and decisions made in the assessment process.