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TMI Blog1989 (4) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... e related question is interesting because of peculiar features, facts and circumstances of the case. 3. The assessee company filed its return on 27th of June, 1980 declaring income at Rs. 6,40,724 claiming the status as industrial company. The business was that of manufacture and export of readymade garments. 4. While processing the return since the Income-tax Officer proposed assessment on income which exceeded the returned figure by more than Rs. 1,00,000 draft assessment order was communicated to the assessee on 23rd of March, 1983 and after receiving its objections it came to be forwarded to the Inspecting Assistant Commissioner for directions under section 144B(4) of the Income-tax Act, 1961. The IAC passed orders giving solicited ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... company as Non-Industrial Company and charging interest u/s 215. In this context we respectfully submit that the ITAT's (Delhi Bench 'D' New Delhi) order for the assessment year 1975-76 and 1976-77 vide ITA Nos. 480 and 481 (Delhi)/1980 confirms us as Industrial Company and the same is reconfirmed by the ITAT's Delhi Bench 'B' New Delhi, ITA No. 3501 (Delhi)/1980 order for the assessment year 1977-78 (photocopies enclosed). We request you to consider the above ITAT's Order and determine the tax liability considering us as Industrial Company. Thanking you, Yours faithfully, for SINGH ENTERPRISES (EXPORT) PVT. LTD." 8. From the above we notice that the demand was raised treating the company as non-industrial one without any discussion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 154/155 in a callous manner on the basis of an order of the Income-tax Appellate Tribunal for other assessment years without examining the facts for the assessment year under consideration. According to the Commissioner each year had to be examined separately and it was income from manufacturing activity alone from which income should have exceeded 51 per cent of the total income and which should have been considered as the basis for deciding the status. The learned Commissioner also opined that the assessee had not filed details along with the return which could show that the profit from manufacturing activity exceeded 51 per cent of the total income. The learned CIT vide further notice dated4-11-1985stated, that since the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the manufacture of processing of goods or in mining, if the income attributable to any one or more of the aforesaid activities included in its total income of the previous year (as computed before making any deduction under Chapter VI-A of the Income-tax Act), is not less than fifty one per cent of such total income." According to the CIT major part of the assessee's company income was from Duty Drawbacks and cash incentives which could be attributed to the trading activities namely, export of the goods that may have been manufactured by the assessee for sale. 15. We, however, found that the necessary exercise had been done by the Tribunal in respect of assessment years 1975-76 and 1976-77 and by closely analysing the provisions of sec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ication within the purview of section 154/155 of the Act. 18. According to us, however, the position is different. What the assessee did was to point out that an important aspect of the assessment was left out of consideration and that the status had been changed without passing an appropriate order and requested that the orders of the Income-tax Tribunal being there for the earlier years, the same should be made the basis of assessment for this year also and the Income-tax Officer accepted such contention. Therefore, the Income-tax Officer's order dated 8th of August, 1983 though captioned as under section 154 must be held to be a part of the regular assessment order under section 143(3) of the Act and nothing more or less. 19. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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