Appeal Dismissed: Tribunal's Decision Upheld on Setting Aside Commissioner's Order

The High Court dismissed the appeal, affirming the Tribunal's decision that there was no illegality in setting aside the Commissioner's order under Section 263 of the Income Tax Act.

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The appeal relates to the assessment year 2002-03. The respondent sold shares for Rs.5,89,264/- from long term capital gain. She filed a revised return surrendering the claim of long term capital gain. The revised return was accepted, and she was assessed at the normal rate of tax. Penalty proceedings were dropped. The Commissioner of Income Tax set aside the order under Section 263 of the Act. The respondent appealed before the Tribunal, which allowed the appeal. The High Court dismissed the appeal, stating there is no illegality in setting aside the Commissioner's order.

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