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TMI Blog1977 (1) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ase amount in respect of Skyline Theatre building, furniture, fittings and machinery. The said return was accepted by the Income-tax Officer. However, the Commissioner of Income-tax, in exercise of his powers under section 263 of the Income-tax Act, revised the order of assessment and directed the Income-tax Officer to reassess the same according to law. Under the said order dated February 27, 1976, the Commissioner of Income-tax expressed his prima facie opinion that the lease income from the said theatre should be assessed in the hands of the association of persons comprising of the respondent-assessee herein and other interested persons, and not separately in the hands of each assessee. As against the said order of the Commissioner, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... therefore, seek to exclude the period during which the stay granted by the Tribunal is in operation. He submits that, in a given case, it may happen that the stay granted by the Tribunal may be operative for a sufficiently long period, leaving no sufficient time for the department to complete the assessment within the period of limitation prescribed by sub-section (2A) of section 153, which would naturally result in grave prejudice to the revenue. For the purpose of examining the said contention, it is necessary to refer to the relevant provisions in the Act. Section 253 provides for an appeal to the Appellate Tribunal against the orders of the Appellate Assistant Commissioner, and the Commissioner, passed under specified provisions of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... satisfied that the entire purpose of the appeal will be frustrated or rendered nugatory if the proceedings sought to be stayed are allowed to continue during the pendency of the appeal. The question that then arises is, whether the introduction of sub-section (2A) of section 153 of the Act makes any difference to the principle enunciated by the Supreme Court in the above decision. Sub-section (2A) of section 153 reads as follows: " (2A) Notwithstanding anything contained in sub-sections (1) and (2), in relation to the assessment year commencing on the 1st day of April, 1971, and any subsequent assessment year, an order of fresh assessment under section 146 or in pursuance of an order, under section 250, section 254, section 263 or secti ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Taxation Laws (Amendment) Act, 1970. Parliament must be presumed to have known about the said decision of the Supreme Court with reference to the powers of the Tribunal under section 254 of the Act, and if it wanted to deprive the Tribunal of the said power or to abridge the same, it could have done so expressly. Moreover, no reasons are placed before us compelling us to hold that sub-section (2A) cuts down the power of the Tribunal under section 254(1) of the Act in any manner. However, it is obvious that the provision contained in sub-section (2A) shall have to be an additional factor which the Tribunal has to take into consideration while passing an order of stay or other interlocutory order pending the appeal before it. In other words, ..... X X X X Extracts X X X X X X X X Extracts X X X X
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