1986 (11) TMI 125 - AT - Income Tax

Summary

The appeal by the revenue against the order of the AAC setting aside an assessment made under section 144 of the Income-tax Act, 1961 was dismissed by the Appellate Tribunal ITAT Jaipur. The AAC's decision was upheld based on the failure of the ITO to dispose of the application under section 146 within the prescribed 90-day period, leading to the automatic cancellation of the assessment. The Tribunal found that the failure to pass an order within the time limit enabled the assessee to challenge the decision in the appeal against the assessment.