9911796707
TMI Blog1994 (4) TMI 104X X X X Extracts X X X X X X X X Extracts X X X X ..... of re-assessment was no more in existence and CIT(A) was right in cancelling the assessment, thereby allowing investment allowance in respect of new plant machinery used for construction activities without considering the nature of business of assessee-firm and also decision of Hon'ble Supreme Court of India in case of CIT v. N.C. Buddhiraja Co. ? " Since common question is involved, these reference applications are being disposed of through this consolidated order. 2. Facts relating to this case are that the original assessments made in this case were revised under section 263 of the Income-tax Act. The order under section 263 was cancelled by the Tribunal vide decision dated 9th April, 1985. In spite of above order, the Assessin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Collector (Appeals). The Asstt. Collector, however, did not accept the assessee's contention. On appeal, the Collector (Appeals) set aside the order of the Assistant Collector and held that reason given by the Assistant Collector for not following the order of the Collector (Appeals) on which the assessee had placed reliance, was totally untenable. He directed the Assistant Collector to pass a reasoned and speaking order. The second order passed by the successor Assistant Collector was practically a repetition of the earlier order. This time, an order of the Tribunal passed in some other case which supported the respondent's claim, was brought to the Assistant Collector's notice, but he refused to follow it on the ground that the department ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he subordinate authorities. The mere fact that the order of the appellate authority is not 'acceptable' to the department is an objectionable phrase--- and is the subject-matter of an appeal, can furnish no ground for not following it unless its operation has been suspended by a competent Court. If this healthy rule is not followed, the result will only be undue harassment to assessees and chaos in administration of tax laws. As regards the question of protection of the interests of the revenue, section 35E confers adequate powers on the department in this regard. If any order passed by an Assistant Collector or Collector is adverse to the interests of the revenue, the immediately higher administrative authority has the power to have the ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ments of judicial discipline and the need for giving effect to the orders of the higher appellate authorities which were binding on them." 5. In the instant case, the CIT(A) and then on further appeal, the Appellate Tribunal had in unmistakable terms pointed out that fresh assessments were without jurisdiction. There is no dispute on above finding but still a question is being sought from the controversy perhaps raised under section 263 of the Act. The said controversy in view of cancellation of order under section 263 by the Tribunal, has no relevancy and was not considered. The ITO lacked power to make fresh assessment and the CIT(A) and the Tribunal merely recorded finding to the above effect. No question of allowability of investment ..... X X X X Extracts X X X X X X X X Extracts X X X X
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