2002 (7) TMI 49

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..... t the subject-matter of appeal before the Commissioner of income-tax (Appeals) and, therefore, the Commissioner of Income-tax was wholly within his jurisdiction to consider the same and give appropriate directions in that regard as has been done in the above case. - The question referred to us is therefore answered in the negative, i.e., against the assessee and in favour of the Revenue.
Judge(s) : G. C. BHARUKA., S. B. MAJAGE. JUDGMENT The judgment of the court was delivered by G.C. BHARUKA J.-The Income-tax Appellate Tribunal, Bangalore Bench, has referred the following question of law for an answer by this court as required under section 256(1) of the Income-tax Act, 1961 (in short, "the Act"): "Whether, on the facts and in the c .....

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..... oubtful debts and grant of deduction under section 80HHC invoked his power of suo motu revision under section 263 of the Act by issuing notice to, the assessee. Subsequently, after hearing the assessee, he passed an order dated March 28, 1988 (annexure D), holding that no deduction on the above two counts was permissible in law and directed the Assessing Officer to reframe the assessment after deleting the said deductions. The said order was questioned by the assessee by preferring an appeal before the Income-tax Appellate Tribunal, which set aside the order of the Commissioner passed under section 263 of the Act on the basis that in view of the law laid down by a Full Bench of this court in the case of CIT v. Hindustan Aeronautics Ltd. [19 .....

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..... the powers under section 263 of the Commissioner shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in an appeal. Accordingly, even in respect of the aforesaid three items, the powers of the Commissioner under section 263 shall extend and shall be deemed always to have extended to them because the same had not been considered and decided in the appeal filed by the assessee. This is sufficient to answer the question which has been referred." In the present case, admittedly, the items relating to bad debts and deduction under section 80HHC of the Act were not the subject-matter of appeal before the Commissioner of income-tax (Appeals) and, therefore, the Commissioner of Income-tax .....

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