TaxTMI 
TaxTMI 
2013 (3) TMI 192
X X X X Extracts X X X X
X X X X Extracts X X X X
....following factual background: 2.1 Assessee filed his return of income for the assessment year 2001-2002 and declared the income of Rs.22.08 lakhs. Return was taken in scrutiny. The Assessing Officer assessed the income of the assessee at Rs. 1.02 crores. Assessee carried the matter in appeal. CIT(Appeals) substantially allowed the appeal of the assessee by his order dated 5.2.2005 and granted several deductions which were disallowed by the Assessing Officer. 2.2 While giving effect to the appellate order, the Assessing Officer passed consequential order dated 10.2.2006 and computed the assessee's taxable income at Rs. 49.84 lakh. Assessee filed application under Section 154 of the Income Tax Act, 1961 contending that several deductions t....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... be assessed at a figure lower than the returned income nor the loss to be assessed at a figure higher than the loss, nor further refund to be given except what was due on the basis of returned income. The Hon'ble Gujarat High Court held that the Assessing Officer exercises quasi-judicial functions and a duty is cast upon him to act in a judicial and independent manner and the other authorities cannot control or affect his judgement in the matter of assessment. Accordingly, the Hon'ble High Court concluded that the order of Assessing Officer, to the extent it stated that the total income should the returned income was to be set aside, with a direction to the Assessing Officer to make assessment without keeping in mind the CBDT's circular da....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ed by the Assessing Officer. 5. Had this being the only basis of Tribunal's order, we would have considered the matter further. However, in the present case central issue is whether the assessee having filed return of income and disclosed certain income in such return, while giving effect to the CIT(Appeals) order in favour of the assessee, computation of assessed income can go below the return income or not. In this regard decision of our Court in case of Gujarat Gas Co. Ltd (supra) is amply clear. Division Bench of this Court was of the opinion that CBDT's circular which provided that the assessed income of an assessee should not be below the return income, was invalid. 6. In case of National Thermal Power Co. Ltd. v. Commissioner of In....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ly to appeals before the Tribunal also." 7. In view of above, we do not find any reason to interfere with the Tribunal's ultimate conclusion in allowing the assessee's appeal. Though some of the observations may not appeal to us, nevertheless, for the reasons somewhat different from those recorded by the Tribunal we come to the same conclusion. Decision of the Apex Court in case of Shelly Products & others(supra), was rendered in very different background. It was a case where the assessee had filed return. Assessee had paid self-assessment tax on the income disclosed in the return. Tribunal on appeal by the assessee held that the order of assessment passed by the Assessing Officer was abinitio void since he had no jurisdiction to deal wit....