TaxTMI 
TaxTMI 
TaxTMI 
1991 (3) TMI 219
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....030 . Less : Expenses for road work being capital . . (4,01,333 + 1,22,680) 5,24,013 . . 5,96,017 . Cane farm expenses limited to actual net . . expenditure over income. 2,28,847 . Cane development salary 10,65,076 . . 18,89,940 . Weighted deduction @ 1/5th of the same (18,89,940) Rs. 3,77,9874 Subsequently, invoking the powers vested in him by s. 263 of the Act the CIT called for and examined the assessment records of the assessee. On such an examination he found that the ITO had erroneously allowed the assessee allowance of Rs 3,77,984 under s.35C of the Act. The CIT found that the balance of cane development expenses of Rs. 5,96,017 comprised the following two items in respect of which allowance under s.35C was ....
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....Engineering Ltd. in ITA No. 2630(Mad)/1984. 5. On the limitation issue, the assessee's case was that, the impugned assessment order having been passed on 11th Sept., 1984, the order in revision ought to have been passed on or before 10th Sept., 1986 and not later. In this regard, the assessee's case was that the extension of the limitation period brought about by the Taxation Laws (Amendment) Act, 1984 would be effective only from 1st Oct., 1984 and it cannot apply to an assessment completed prior to that date. The CIT rejected these contentions also relying on the ratio of the decision of the jurisdictional High Court in the case of Chettinad Corpn. Pvt Ltd vs. CIT (1982) 31 CTR (Mad) 29: (1983) 141 ITR 693 (Mad) and of the Karnataka High....
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....roposition, reliance was placed on the Bombay case of Ritz Ltd vs. Union of India (1990) 83 CTR (Bom) 177: (1990) 184 ITR 599 (Bom). 10. Shri Krishnan, next contended that the CIT was not justified in relying on the M.P. Case of Banwarilal. According to him, when there is no direct decision of the jurisdictional High Court on this issue, the Commissioner ought to have followed the decision favourable to the assessed In this regard, he relied on the Bombay case of Subramanian, K., ITO vs. Siemens India Ltd (1983) 36 CTR (Bom) 197: (1985) 156 ITR 11 (Bom). 11. Turning next to the decision of the Madras High Court in the case of CIT vs. Eimco KCP. Ltd. referred to and relied upon by the CIT, Shri Krishnan contended that the doctrine of merge....
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.... on 14th Feb., 1991, Shri Krishnan, made the following points: (i) The decision of the Tribunal, Madras Bench in the case of Carborandum Universal Ltd. vs. ITO was not considered in the said three cases. (ii) in the case of CIT vs. East Coast Marine Products Pvt. Ltd (1990) 88 CTR (AP) 156 the Andhra Pradesh High Court had no doubt made certain observations on Expln. (c) to s.263. But, these observations are in the nature of obiter. (iii) The Bombay decision, in the case of Ritz Ltd. is directly applicable to the case before us and, consequently, the assessee is entitled to succeed. 14. The learned Departmental Representative strongly supported the impugned order of the CIT. 15. On hearing the rival submissions, we see no reason to tak....
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.... the Andhra Pradesh High Court referred to the 1988 Amendment to s. 263. Therefore, the said decision was rightly referred to and relied upon by the Tribunal in the case of Investment Trust of India (P) Ltd. 18. There is yet another matter that is noteworthy. Prior to the introduction of Expln. (c) to s. 263, there was difference of opinion amongst the Courts as to Whether an assessment order completely merged with the order of the first appellate authority. The Bombay High Court has subscribed to the view of total merger. This recent decision in the case of Ritz Ltd. will have to be understood against the said background. 19. The High Courts of Madras and Andhra Pradesh, on the contrary, have always held that the merger was limited to th....