2000 (12) TMI 23

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....-tax has no jurisdiction to pass order under section 263 of the Income tax Act, 1961?" In the assessment case of the year 1979-80 of the two assessee-companies herein, weighted deduction under section 35B was allowed in relation to three items, but it was disallowed on the item "export freight". Aggrieved by the order of the Assessing Officer, the assessee went in appeal under section 251 of the Act before the Commissioner (Appeals). The Commissioner (Appeals) however, confirmed the order of the Income-tax Officer disallowing the assessee's claim of weighted deduction under section 35B in relation to item No.1, i.e., export freight. The Commissioner of Income-tax, however, initiated revisional proceedings under section 263 of the Act as, a....

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....ich has been quoted and relied on by the Supreme Court in the case of Shri Arbuda Mills Ltd. [1998] 231 ITR 50 reads as under: "Explanation.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section.-. . . (c) where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal filed on or before or after June 1, 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." Learned counsel appearing for the assessee made an effort to distinguish the decision of the Supreme Court by contending that here the question was the ....