9911796707
TMI Blog1986 (2) TMI 77X X X X Extracts X X X X X X X X Extracts X X X X ..... his common order. 2. The Commissioner issued certain directions under section 263 of the Income-tax Act, 1961 ('the Act') to the ITO. The assessee then made an application to the IAC, who issued directions to the ITO, before the ITO passed any order pursuant to the directions issued to him under section 263. The ITO then carried out the orders of the IAC and not that of the Commissioner. Thereup ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 263 after the ITO has passed order pursuant to the directions of the IAC but the question here is whether the IAC can pass an order after the Commissioner has issued directions under section 263. In our view, the IAC cannot pass such an order and it is beyond his powers to do so. Under section 144A the IAC has got powers to issue directions for the guidance of the ITO to enable him to c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nvalid. The argument that the Commissioner cannot issue an order under section 263 in respect of an order passed by the ITO pursuant to the directions of the IAC, would apply only if the IAC's directions are valid. Since in this case the directions are invalid, in our view the subsequent order of the Commissioner under section 263 is valid and justified. 4. That brings us to the merits of the di ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same argument was raised by the assessee for this amount and the Commissioner rejected this contention. This Tribunal vide its order dated 5-8-1985 in the case of Kaloomal Shorimal Sachdev v. First ITO [1985] 14 ITD 248 (Bom.)(SB), has held as follows : "... the definition of 'deposit' in the Explanation to section 40A(8) is so wide that it must include all these so-called 'current accounts' so ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ith the company under the so-called current deposits. A person taking a loan is a debtor while a person giving the loan is a creditor. 'Loan' is included in the definition of 'deposit'. Therefore, all deposits in these current accounts would be deposits within the meaning of section 40A(8). It is immaterial that in some cases there have been a number of deposits and withdrawals. Once it is held th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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