9911796707
TMI Blog1999 (4) TMI 70X X X X Extracts X X X X X X X X Extracts X X X X ..... assessment order but was allowed in the assessment order in consequence of the direction of the Inspecting Assistant Commissioner under section 144B it was not open to the Commissioner of Income-tax to exercise his jurisdiction under section 263 of the Income-tax Act, 1961, in respect of that part of the assessment order ?" This reference pertains to the assessment year 1978-79. The material facts giving rise to this reference are as under : The assessee is a limited company. In the draft assessment order, which was forwarded by the Income-tax Officer to the Inspecting Assistant Commissioner under sub-section (4) of section 144B of the Income-tax Act, 1961 ("the Act"), the Income-tax Officer had proposed disallowance of the claim of de ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 144B of the Act, it was not open to the Commissioner of Income-tax to exercise his revisional power under section 263 of the Act for revising that part of the order. Aggrieved by the above order, the Revenue is before us by way of this reference. We have heard Mr. R. V. Desai, learned counsel for the Revenue, and Mr. J. D. Mistry, learned counsel for the assessee. The controversy in this case is whether it is open to the Commissioner to exercise revisional powers under section 263 of the Act in respect of an order of assessment passed under section 143(3) read with section 144B of the Act. This controversy is squarely covered by the decision of this court in CIT v. M. M. Virwani [1994] 207 ITR 225, wherein it was held that only bec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his, however, does not make any difference. The fact remains that the assessment is an assessment made by the Income-tax Officer under section 143(3) of the Act. An order passed by the Income-tax Officer under section 143(3) of the Act, therefore, continues to be an order under that section though passed after following the mandatory procedure laid down in section 144B." This court also held that section 144B though inserted as an independent section, in truth and substance, is in the nature of a proviso to section 143(3) of the Act and should be read as such. The question referred to us in this case is thus squarely covered by the above decision. Following the same, we answer the question in the negative, i.e., in favour of the Revenue ..... X X X X Extracts X X X X X X X X Extracts X X X X
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