1991 (3) TMI 390

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....the Tribunal was justified in holding that the CIT had no jurisdiction to invoke the provisions of s. 263 of the IT Act and in that view in cancelling the order under s. 263 passed by the CIT ?" 2. Shortly stated the facts are that the CIT exercised his jurisdiction under s. 263 of the IT Act, 1961 in respect of the asst. yr. 1977-78 as, according to him, the order passed by the ITO was erroneous, inasmuch as, the ITO came to the conclusion that only 7/12th of the head office expenses should be taken into account for disallowing the expenses as provided under s. 44C. He also observed that the ITO erred in calculating the correct amount of disallowance. According to the CIT the order of the ITO was erroneous and prejudicial to the interes....

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.... the appeal filed by the assessee on 30th Aug., 1980, and, therefore, the CIT had no jurisdiction under s. 263. It was further argued on behalf of the assessee that the CIT(A) omitted to adjudicate on the ground taken by the assessee regarding s. 44C, and on further appeal by the assessee, the Tribunal vide its order dt. 12th Nov., 1981 directed the CIT(A) to dispose of the ground, and, therefore, the CIT had no jurisdiction to act under s. 263. It was also argued on behalf of the assessee that on the facts of the case, the order of the CIT under s. 263 cannot be upheld. Reliance was placed on the decision of the Tribunal in ITA No. 2114/Cal/1980 in the case of Singlo (India) Tea Co. Ltd. dt. 19th July, 1982 and also on another decision in ....