9911796707
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Issues:
1. Jurisdiction of the Commissioner to revise an order made under section 147 of the Income-tax Act, 1961. 2. Interpretation of the amended sub-section (2) of section 263 regarding the time limitation for revision. 3. Vested rights of the assessee in relation to the reassessment order passed prior to the amendment. Detailed Analysis: 1. The appeal challenged an order made under section 263 of the Income-tax Act, 1961, concerning the assessment year 1978-79. The key issue was whether the Commissioner had the jurisdiction to revise an order made under section 147 of the Act. The Tribunal noted that the statute at the time of finalization of reassessment proceedings in 1983 restricted the Commissioner's power to revise reassessment orders under section 263. The Tribunal emphasized that reassessment orders made under section 147 were beyond the reach of the Commissioner for revision, granting the assessee a vested right to be exempt from revision under section 263. 2. The Tribunal analyzed the amended sub-section (2) of section 263, introduced in 1984, which extended the Commissioner's power to revise orders made under section 147 and altered the time limitation for revision. The new provision allowed revision within two years from the end of the financial year in which the order sought to be revised was passed. The Tribunal concluded that the Commissioner's order in 1985 fell within the revised time limit, both as per the law existing when the reassessment order was made and in accordance with the amended sub-section. This aspect was not contested by the parties. 3. The Tribunal considered the vested rights of the assessee in light of the amendment and relevant judicial precedents. Referring to Supreme Court judgments, the Tribunal highlighted that unless expressly provided, retrospective operation should not affect vested rights. The Tribunal determined that the amended provision did not empower the Commissioner to review reassessments made before the amendment, preserving the assessee's vested right. Consequently, the Tribunal held that the Commissioner lacked lawful jurisdiction to examine the order from 1983, rendering his subsequent order void ab initio. As a result, the Tribunal allowed the appeal, emphasizing that the proceedings' invalidity precluded a review of the case's merits. In conclusion, the Tribunal's decision primarily focused on the Commissioner's jurisdiction to revise reassessment orders under section 147, the impact of the amended time limitation under section 263, and the preservation of the assessee's vested rights in light of statutory amendments and judicial interpretations.
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