1996 (2) TMI 585

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..... tated the case and referred the under-noted question of law for our opinion with reference to the order passed in IT Appeal No. 978 (Ind.) of 1984 : Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the Commissioner had no jurisdiction to revise under section 263 of the Income-tax Act, 1961 an assessment order passed by the ITO in accordance wit .....

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..... Tribunal and took the objections that the ITO having framed the assessment order in conformity with the directions of the IAC under section 144B, the Commissioner was not competent to resort to section 263 as the order tantamounted in substance to that of the IAC. The Tribunal upheld the objections of the assessee and held that the Commissioner had no jurisdiction to revise the assessment order u .....

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..... ard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. 5. Explanation to this section was inserted by the Taxation Laws (Amend-ment) Act, 1984 with effect from 1-10-1984. Thereafter new .....

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..... statute is curative or merely declares the previous law, retroactive operation would be more rightly ascribed to it. By the aforesaid Explanation, what was implicit, was made explicit. It was added to remove the doubt that for the purpose of sub-section (1) of section 263, an order passed by the ITO shall include an order of assessment made on the basis of the directions issued by the IAC under se .....

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..... . In view of the explanation, which is clarificatory in nature and thus curative and in view of the decisions mentioned aforesaid, we hold that the Tribunal was not right. 11. Accordingly, we answer the question in the negative, i.e., in favour of the revenue and against the assessee. 12. The question is answered accordingly. 13. The reference application is decided in terms indicated abo .....

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