TaxTMI 
TaxTMI 
2006 (8) TMI 92
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....ssessee dismissed. This appeal was admitted by this court for final hearing on the following substantial questions of law on February 11, 2000: (i) 'Whether the Commissioner of Income-tax is entitled to set aside the assessment order passed by the Assessing Officer, when the case is connected with the provisions of section 144A of the Income-tax Act, 1961, without setting aside the order passed by the Deputy Commissioner in view of the provisions of section 144A of the Act ? (ii) Whether the Income-tax Commissioner is empowered to set aside the order of the assessment passed by the Assessing Officer without issuing such notice to such assessee to revive the order passed by the Deputy Commissioner of Income-tax? (iii) Whether in the....
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....for the appellant, submits that the revision is maintainable only if the order is illegal and is prejudicial to the interests of the Revenue. It is submitted that even if one of the ingredients is missing, then the revision is not maintainable. Learned counsel further submits that the learned Commissioner had no jurisdiction to examine the legality of the directions dated March 23, 1995, issued by the Deputy Commissioner of Income-tax under section 144A of the Act. 4 Shri R. L. Jain, learned counsel for the Revenue, raises a preliminary objection and submits that the matter relates to the accounting years 1984- 85 to 1992-93 for which separate appeals were filed by the assessee. It is submitted that against the order passed by the Commis....
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....bjection raised by the Revenue, this appeal is being disposed of on the merits. 'Section 144A of the Income-tax Act reads as under : "144A. Power of Joint Commissioner to issue directions in certain cases.—A Joint Commissioner may, on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the, nature of the case or the amount involved or for any other reason, it is necessary or expedient so to do, he may issue such directions as he thinks fit for the guidance of the Assessing Officer to enable him to complete the assessment and such directions shall....
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....or Deputy Commissioner or the Income-tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A." 8 Learned counsel for the respondent Shri R. L. Jain, submits that the learned Commissioner of Income-tax was within his jurisdiction to examine the validity of the direction issued by the Deputy Commissioner of Income-tax while examining the order of the Assessing Officer. Reliance was placed on sub-clause (a) (i) of the Explanation to sub-section (1) of section 263 of the Act. Reliance was placed on a decision of the Madras High Court in CIT v. V. V. A. Shanmugam reported in [1999] 236 ITR 878, wherein before a Division Bench of the Madras High Court the question whether the order passed by the Income-ta....