2008 (6) TMI 342

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....e respondent. JUDGMENT The judgment of the court was delivered by C. N. Ramachandran Nair J.- This appeal is filed by the Revenue against the annexure C order of the Tribunal vacating the suo motu revisional order passed by the Commissioner under section 263 of the Income-tax Act, 1961, directing revision of the respondent's assessment for the year 1996-97. The assessment originally compl....

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....g for the Department and Sri K. R. Sudhakaran Pillai appearing for the respondent-assessee. 2. We find from the order of the Tribunal that they have interfered with the Commissioner's order without conclusively deciding on the merits that the assessee is entitled to reckon depreciation in the computation of capital gains on sale of the theatre building under section 50 of the Income-tax Act. Th....

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.... made on estimated income of Rs. 16,000 for each year. Against these findings made by the Commissioner, the assessee pretended ignorance on the non-filing of returns on the ground that files were with the estranged partner. While counsel for the appellant has relied on the decision of the Madras High Court in Rajarathinam Transports P. Ltd. v. CIT [1993] 199 ITR 203, counsel for the assessee has r....

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.... to the section 263 order of the Commissioner. However, we make it very clear that the assessee will be free to place full facts and raise all contentions on the merits and the findings if any recorded by the Commissioner in the order under section 263 should be treated as only opinion or observations by him which the assessee is free to contest in regular assessments. The officer is directed to t....