1988 (6) TMI 83

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..... tion the order of the Commissioner is invalid in law and needs to be quashed. Reliance was placed on East Coast Marine Products (P) Ltd. vs. ITO (1983) 4 ITD 73 (Hyd) (SB). Vionod Kumar Jainchand Shah vs. ITO (1986) 25 TTJ (Bom) and also Auto Pins India vs. ITO (1987) 20 ITD 1 (Del). 3. Coming to the merits of the case, the learned counsel fairly conceded that, in part 2(ii), the Commissioner has highlighted certain possibility of mistakes, such as, differences in the trading account with the ledger. He, however, objected to the observation made by the CIT in para 4 of his order, wherein he has given certain opinions on the basis of which the ITO is expected to pass an order without leaving any right of appeal to the assessee, which is imp .....

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..... Bench in the case of Vinod Kumar Jaichand Shah in which the Explanation as was introduced w.e.f. 1st Oct. 1984 was also considered after which the conclusion have only prospective effect and, accordingly, any orders of the ITO passed after obtaining the approval of the IAC under s. 144B prior to 1st Oct., 1984 could not be revised by the Commissioner under s. 263. Similar view was taken by the Delhi Bench in the case of Auto Pins (India) vs. ITO. Therefore, following the said three decisions of the Tribunal, we have only to hold that the Commissioner could not revise the orders of the ITO is passed after obtaining the approval of the IAC under s. 144B especially as the said orders were passed prior to 1st Oct., 1984. 5. On the merits of t .....

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..... nses claimed over and above the actual expenditure, purchases which could be said to be non-certifiable. We have therefore, only to modify the para 4 of the Commissioner's order to this extent that it should be treated as an observation for the purpose of examination only. This would be obvious as in case after examining records if it is found that these are certain expenses, which cannot be verified for which no explanations are forthcoming or it is established that certain bills do not represent actual purchases the ITO would have necessarily to be called for the explanation of the assessee as to why these items should not be disallowed. The ITO can only examine the case afresh in the light of the above observation and those made by the C .....

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