9911796707
TMI Blog1976 (6) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... cer and it was pending before the Appellate Assistant Commissioner for disposal ? " The assessment year is 1964-65 and the corresponding accounting period is the financial year 1963-64. There were credit entries in the accounts of the assessee during the accounting period. These entries may be divided into two groups ; one group adding up to Rs. 75,000 and another to Rs. 20,000. The assessing authority questioned the correctness of those entries but eventually accepted the explanation of the assessee in relation to the sum of Rs. 75,000 but did not accept the explanation regarding the sum of Rs. 20,000. The income of the assessee was ultimately fixed by the Income-tax Officer at Rs. 1,68,920 as against the income of Rs. 25,880 returned by ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l before the Commissioner and that question is no more alive for the purpose of this reference. Regarding the second contention, the Tribunal held that the order of the Commissioner under section 263 was validly passed as the section enabled the Commissioner to pass such an order even during the pendency of an appeal. Counsel for the assessee submitted before us that the order of the Tribunal is erroneous. It was contended that the assessment order having been appealed against and since the appellate authority has power to enhance the assessment if necessary, the proper and the correct procedure to follow even if the Commissioner had found out errors in the assessment order while investigating the correctness of that order pursuant to his ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner to revise an order of the Income-tax Officer, section 264 is wider in that the Commissioner has the power to deal with an order of any subordinate authority and, therefore, that of an Appellate Assistant Commissioner as well. Section 264 is wider in another sense in that it does not say that the Commissioner should be satisfied that the order is prejudicial to the revenue. But, there are limitations in the power conferred by section 264 on the Commissioner. Sub-section (4) provides : " 264. (4) The Commissioner shall not revise any order under this section in the following cases-- (a) where an appeal against the order lies to the Appellate Assistant Commissioner or to the Appellate Tribunal but has not been made and the time within wh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... considerations may arise where the subject-matter of the two proceedings, one under section 263 and the other before the Appellate Assistant Commissioner are different. This has been emphasised by the Supreme Court in the appellate decision from the decision in Commissioner of Income-tax v. Amritlal Bhogilal & Co. [1953] 23 ITR 420 (Bom)--on appeal [1958] 34 ITR 130 (SC). The relevant facts of the case were that there was an order granting registration to the firm which was the assessee. That order was not appealable.The assessment orders for more than one year relating to that firm were appealed against and, thereafter the Commissioner purported to exercise his powers under section 33B of the Indian Income-tax Act, 1922, and set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come-tax [1962] 44 ITR 578 (Assam) was that noticed by us : the contrast between the language in section 33A as compared to that in section 33B of the Act of 1922 Their Lordships observed : " In my opinion, therefore, the contrast between the two sections brings out clearly that the powers under section 33B are not circumscribed except to the extent mentioned in that section itself. The same point was emphasised by repeating it later in the judgment. : " As I have endeavoured to show by a contrast between the provisions of section 33A and section 33B of the Act, the powers under section 33B could be exercised even where an appeal is pending from the order of the Income-tax Officer and the powers given under section 33B could be exercised ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
