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of <h1>Revision petition under Gift-tax Act allowed post-dismissal; Circulars & precedents key</h1> <h3>Mansarovar Investments Limited Versus Commissioner of Income-Tax.</h3> Mansarovar Investments Limited Versus Commissioner of Income-Tax. - [2006] 287 ITR 137, 203 CTR 545, 154 TAXMANN 566 Issues Involved:1. Maintainability of revision petition against an order challenged in an appeal dismissed as not maintainable.Analysis:The judgment delivered by the High Court of Delhi revolves around the issue of the maintainability of a revision petition under section 24(1) of the Gift-tax Act in a scenario where an appeal filed against the order under challenge was dismissed as not maintainable. The case originated from the assessment of an assessee-company under the Gift-tax Act in 1995. Subsequently, the Gift-tax Officer computed the gift-tax payable by the petitioner and charged interest, leading to a demand against the petitioner. The petitioner appealed against the order, which was dismissed by the Commissioner of Gift-tax (Appeals) on the grounds of maintainability. The petitioner then filed a revision petition before the Commissioner of Income-tax/Gift-tax, which was also dismissed on the same grounds. The central question was whether a revision petition could be maintained in such circumstances.The petitioner contended that the Commissioner erred in holding the revision petition as not maintainable, arguing that the appeal dismissal did not touch upon the merits of the case. The petitioner relied on a circular by the Central Board of Direct Taxes, emphasizing that an appeal dismissed as not maintainable does not prevent the filing of a revision petition against the challenged order. The petitioner further cited Supreme Court and Division Bench judgments to support the binding nature of circulars issued by the Board on the respondents.On the other hand, the respondent argued that the order by the Assessing Officer was essentially an order giving effect to the Commissioner's decision, making it appealable before the Commissioner. The respondent cited a Bombay High Court decision to support this stance. The High Court analyzed the circular by the Central Board of Direct Taxes, which clarified that orders dismissed as incompetent or withdrawn by the assessee cannot be considered as the subject of an appeal. The Court held that the revision petition was maintainable, disagreeing with the Commissioner's decision.Additionally, the High Court referred to a Supreme Court judgment that emphasized the non-appealable nature of an order computing tax to give effect to an appellate authority's decision. The Court concluded that the Commissioner of Income-tax (Appeals) was justified in holding the initial appeal as not maintainable, and that the order had attained finality. As a result, the writ petition was allowed, quashing the order dismissing the revision petition and remitting the matter back to the Commissioner for fresh disposal within a specified timeframe.In summary, the judgment clarifies the criteria for the maintainability of a revision petition under the Gift-tax Act when an appeal against the challenged order is dismissed as not maintainable. It underscores the significance of circulars issued by the Central Board of Direct Taxes, judicial precedents, and the nature of orders giving effect to appellate decisions in determining the course of legal proceedings.
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