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TMI Blog2014 (10) TMI 362X X X X Extracts X X X X X X X X Extracts X X X X ..... cture of cotton and man-made fibre yarn. For the assessment year 1989-90, the assessment was completed on 27.2.1992 determining the taxable total income for 21 months ending 31.3.1989 at Rs. 45,92,240/- based on the book profits under Section 115J of the Income Tax Act, 1961 (for brevity, 'the Act'). The main reason for determining the said amount was that the assessee changed its method of claiming depreciation from Straight Line Method to Written Down Value method. 2.2. On appeal by the assessee, the Commissioner of Income Tax (Appeals), by order dated 28.8.1992 made in I.T.A.No.60 of 1992-93, held against the assessee. However, the Tribunal set aside the orders passed by the authorities below and remitted the matter to the Asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Supreme Court in Surana Steels Pvt. Ltd. case, referred supra, and the Board Circular No.68, dated 17.11.1971 passed the following order: "Applying the ratio decidendi out of the said decision of the Tribunal in 81 ITD 282 to the facts of the present case we are of the opinion that there had been apparent mistake in the order of the Tribunal in view of the subsequent decision of the Supreme Court in the case of Surana Steels Ltd. and also in the case of Apollo Tyres Ltd. and hence the original order in the appeal requires to be recalled. For the above reasons, we are inclined to recall the order of the Tribunal dated 9.12.1996 in I.T.A.No.719(Mds)/1994, and direct the Registry to post the case before the regular Bench for deciding the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dated June 12, 2003 are set aside as it is settled that when initiation of proceedings under a statute lacks jurisdiction, the final or consequential order is also liable to be struck down. The questions are answered in favour of the Revenue and against the assessee. The appeal stands allowed. No costs." 2.8. The assessee filed appeal to the Supreme Court and the Supreme restored the matter to the file of this Court holding as under: "9. For the aforesated reasons, we set aside the impugned judgment of the High Court and restore Tax Case (Appeal) No. 2 of 2004 on the file of the Madras High Court for fresh decision on the merits of the matter as indicated hereinabove. All contentions on the merits are expressly kept open. We express no o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he Tribunal that the Tribunal was guided not only by the decision of the Supreme Court in Apollo Tyres Ltd. case, referred supra, which was rendered subsequently at the time of disposal of the miscellaneous petition seeking rectification, but also followed the decision in Surana Steels Pvt. Ltd. case, referred supra, and the Board Circular No.68, dated 17.11.1971. The relevant portion of the said order passed by the Tribunal is extracted hereunder for better clarity: "5.4.Further the decision relied upon by the Commissioner (Appeals) in the case of V.V.Trans Investments (P) Ltd., 207 ITR 509 (A.P.) has been reversed by the Apex Court in the decision reported in 237 ITR 777 (Surana Steels, etc.). On this consideration also the assessee' ..... X X X X Extracts X X X X X X X X Extracts X X X X
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