2011 (2) TMI 71

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....itigation have direct bearing on the issue.   2. The respondent had filed the income tax return for the assessment year 1999-2000 declaring income of Rs.2.31 crores. The assessment was completed under Section 143(3) of the Income Tax Act (hereinafter referred to as "the Act") at an income of R.3.56 crores. Since additions were made by the Assessing Officer while passing the assessment order that order was challenged by the assessee in appeal which was deiced by CIT(Appeals) on 19.06.2002 granting partial relief to the assessee. In the meantime, the Commissioner of Income Tax exercised its jurisdiction under Section 263 of the Act and passed order on 25.03.2004 opining that the Assessing Officer while passing the order had not taken ....

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....rder at the stage, therefore, Revenue felt aggrieved by that order of the Tribunal preferred an appeal before this Court, i.e., ITA No.1038 of 2008. This appeal was dismissed vide detailed order dated 10.09.2008. We have summoned the file of that appeal and find that following questions of law were raised by the Revenue in the said appeal:   a) Whether ITAT was correct in law in holding that the appeal filed by the assessee had become infructuous, and decision of any ground of appeal would be of academic interest as the Assessing Officer had not passed the consequential order in pursuance to order passed by Ld. CIT within the limitation period?   b) Whether ITAT was correct in law in holding that the time limit for framing t....

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....mstances of the case justify", including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment. In view of this provision it is clear that the Commissioner may pass any order as the circumstances of the case justify. In the present case we find that the Commissioner while passing the order under Section 263 has given a specific direction that the Assessing Officer shall pass the consequential orders within a period of three months approximately. This direction would certainly fall within the expression "such order thereon as the circumstances of the case justify" appearing in Section 263(1) of the said Act. It appears that it is in this context that the Tribunal concluded that the time....

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....der dated 10.09.2008 in ITA No.1038/2008.   6. Against the order of the Assessing Officer passed on 2nd September, 2008, the assessee preferred appeal in which assessee was successful as CIT(Appeal) reversed the aforesaid order holding that the Assessing Officer was precluded from passing that order in view of the orders passed by the Tribunal and the High Court as aforesaid. Revenue's appeal against the order of the CIT(Appeal) has been dismissed by the Tribunal in the aforesaid circumstances, against which the present appeal is preferred.   7. Ms.Bansal, learned senior counsel appearing for the appellant, raised two-fold submissions, namely, (i) no limitation is provided under Section 153(3)(ii) of the Act and, therefore, ....