9911796707
TMI Blog1990 (3) TMI 29X X X X Extracts X X X X X X X X Extracts X X X X ..... ax Act, 1961 (for short "the Act"). The reassessments were challenged, inter alia, on the ground that they were made beyond the time limit prescribed for their completion. The Commissioner (Appeals) rejected the challenge and held that the reassessments were not barred by limitation. Observing that certain procedural irregularities were committed while making the reassessment, however, the Commissioner (Appeals) set aside the assessments directing the Income-tax Officer to make fresh assessments after following the procedure according to law. The order of the Commissioner (Appeals) was confirmed by the Tribunal by its order dated October 18, 1982. The effect of the Tribunal's order was that the validity of the reopening of the assessments u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e for the assessee, who urged before us that a suitable order may be passed by us as prayed for in the miscellaneous application. He relied on the decision in the case of Puran Mal Kauntia [1975] 98 ITR 39 (Patna) in support of his contention. Shri R. N. Vaze, learned representative for the Department, on the other hand, stated that there is no error apparent from the record in the order of the Tribunal which can be rectified under section 254 of the Act, especially when a reference has already been made to the High Court. We have considered the contentions of both the parties as well as the facts on record. We do not find any force in the miscellaneous petition under consideration. No direction on the lines prayed for by the assessee can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the principle enunciated by it in ITO v. M. K. Mohammad Kunhi [1969] 71 ITR 815 (SC) to the extent that it held that whatever powers the Tribunal had during the pendency of appeal before it, it continued to have even after the disposal of appeal in case reference therefrom was pending before the High Court. This power the Tribunal did not exercise taking the view that, after the appeal was disposed of, it did not have any such power. Assuming that the Tribunal had exercised this power, Shri Rajgopal submitted that the power was wrongly exercised as the balance of convenience lay in favour of the petitioner's claim. If the Income-tax Officer was not prevented from proceeding with the assessments, he may make fresh assessments. Demands may ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eld by the Supreme Court in Kunhi's case [1969] 71 ITR 815 itself, such a power was not to be exercised as a matter of routine or as a matter of course in view of the special nature of taxation and revenue laws. Only when the Tribunal is satisfied that the entire purpose of the Appeal will be frustrated or rendered nugatory by allowing the recovery proceedings to continue during the pendency of the appeal before it, should the Tribunal exercise such a power. The caution necessary in matter of stay, according to Shri Jetley, was all the more required when the question involved was that of staying the assessment proceedings before the Income-tax Officer. As regards the balance of convenience, he pointed out that the assessments involved herei ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y of demand but other powers also which are ancillary or incidental to the power of appeal. In my judgment, the principle laid down by the Supreme Court in Kunhi's case [1969] 71 ITR 815 was extended to Bansi Dhar's case [1986] 157 ITR 665. It can now be taken as settled law that the Tribunal continues to have all powers necessary to make the right of appeal effective during the pendency of the appeal as also after the appeal is disposed of and reference is pending before the High Court. The next question is whether the Tribunal exercised or failed to exercise this power and in case the power was exercised, whether it was validly exercised and further, whether it was a fit case for this court to interfere in writ jurisdiction. Firstly, th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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