AI OCR 
TaxTMI 
TaxTMI 
TaxTMI 
2005 (11) TMI 30
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....facts in M.A.I.T. No. 52 of 2004. The assessee-respondent is a private limited company deriving income from manufacturing of bread and allied products and sale thereof. The office and residential premises of the assessee and its directors were searched under section 132 of the Income-tax Act, 1961 (for brevity "the Act") and a survey under section 133A of the Act in the factory was taken on October 7, 8 and 9, 1998. Besides books of account other documents were found and seized during the proceedings. A notice under section 158BC of the Act was issued on August 3, 2000, and served upon the assessee on August 4, 2000. The assessee was required to file a block return within 20 days. A return in the Form No. 2B for the relevant block period for the assessment years 1989-90 to 1999-2000 was filed on October 6, 2000, declaring total undisclosed income at Rs. 1,23,150 in response to the notice issued under sections 142(1) and 143(1) of the Act. The representative of the assessee attended the proceedings from time to time. Written replies were filed along with copies of documents in compliance of queries specially in reference to seized books of account, loose papers and other documents.....
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....d all the documents and there had been proper application of mind and the Commissioner, Income-tax, had not recorded any specific defect except stating that it was prejudicial to the interests of the Revenue. In view of the aforesaid analysis, the Tribunal set aside the order passed by the Commissioner and restored the order passed by the Assessing Officer. Questioning the correctness of the order passed by the Tribunal it is submitted by Mr. Rohit Arya, learned standing counsel for the Revenue, that the Commissioner has exercised jurisdiction under section 263 of the Act in an appropriate manner taking into consideration the factual matrix in its entirety and the Tribunal has dislodged the same only on the ground that no specific defect had been pointed out. It is contended by him that the authority while exercising power under section 263 of the Act had noticed that the Assessing Officer to save the period of limitation had acted in a hurry without proper application of mind, as a consequence of which detriment had been caused to the Revenue and when such a facet was noticed the order of assessment was cancelled and the same being founded on proper base should not have been rega....
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.... Officer had been the subject matter of any appeal filed on or before or after the 1st day of June, 1988, the powers of the Commissioner under this sub-section shall extend and shall be deemed always to have extended to such matters as had not been considered and decided in such appeal. (2) No order shall be made under sub-section (1) after the expiry of two years from the end of the financial year in which the order sought to be revised was passed. (3) Notwithstanding anything contained in sub-section (2), an order in revision under this section may be passed at any time in the case of an order which has been passed in consequence of, or to give effect to, any finding or direction contained in an order of the Appellate Tribunal, the High Court or the Supreme Court. Explanation.- In computing the period of limitation for the purposes of sub-section (2), the time taken in giving an opportunity to the assessee to be reheard under the proviso to section 129 and any period during which any proceeding under this section is stayed by an order or injunction of any court shall be excluded." On a scanning of the anatomy of the said provision, it is demonstrable that certain statutory sa....
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....ion because of new views they entertain on facts or new versions which they present as to what should be the inference or proper inference either of the facts disclosed or the weight of the circumstances. If this is permitted, litigation would have no end, 'except when legal ingenuity is exhausted'. To do so, is '... to divide one argument into two and to multiply the litigation'. The power of suo motu revision under sub-section (1) is in the nature of supervisory jurisdiction and the same can be exercised only if the circumstances specified therein exist. Two circumstances must exist to enable the Commissioner to exercise power of revision under this sub-section, viz., (i) the order is erroneous; (ii) by virtue of the order being erroneous prejudice has been caused to the interests of the Revenue. It has, therefore, to be considered firstly as to when an order can be said to be erroneous. We find that the expressions 'erroneous', 'erroneous assessment' and 'erroneous judgment' have been defined in Black's Law Dictionary. According to the definition, 'erroneous' means 'involving error; deviating from the law'. 'Erroneous assessment' refers to an assessment that deviates from the l....
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....s in matters which have already been concluded under the law. As already stated it is a quasi-judicial power hedged in with limitation and has to be exercised subject to the same and within its scope and ambit. So far as calling for the records and examining the same is concerned, undoubtedly, it is an administrative act, but on examination 'to consider' or in other words, to form an opinion that the particular order is erroneous in so far as it is prejudicial to the interests of the Revenue, is a quasi-judicial act because on this consideration or opinion the whole machinery of re-examination and reconsideration of an order of assessment, which has already been concluded and controversy which has been set at rest, is set again in motion. It is an important decision and the same cannot be based on the whims or caprice of the revising authority. There must be materials available from the records called for by the Commissioner." In view of the aforesaid pronouncement of law and taking into consideration the language employed under section 263 of the Act, it is clear as crystal that before exercise of powers two requisites are imperative to be present. In the absence of such foundati....