2005 (8) TMI 106

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....that confirmations from creditors were not filed, the Tribunal was right in holding that the assessment order was not erroneous and consequently in cancelling the order under section 263?" We have heard learned counsel for the parties and perused the material available on record. The assessment for the assessment year 1993-94 in the case of the respondent-assessee was completed on January 31, 1996, under section 143(3). The Commissioner of Income-tax considering the said order to be erroneous and prejudicial to the interest of the Revenue invoked his jurisdiction under section 263 of the Income-tax Act, 1961, cancelled the assessment order and directed the Assessing Officer to make a fresh assessment order after making inquiry into....

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....d into and after the material was produced before the Income-tax Officer, further time was given and some more documents were specifically required from the assessee before assessment could be made and only thereafter has the assessment been made after discussing the case with authorised representatives of the assessee. The record of proceedings clearly shows that the Assessing Officer has framed his assessment after due application of mind and holding enquiries into all areas, which, according to the Commissioner of Income-tax, have not been at all enquired into and the Assessing Officer has acted merely on furnishing evidence on one single date. In this connection, it would be relevant to refer to the material which was relied on by th....

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....Act, was not existing. We are of the opinion in the aforesaid circumstances on the finding reached by the Assessing Officer, no question of law really arises for consideration in this appeal. It is true that in a given case not holding any enquiry, which is relevant for assessment may indicate non-application of mind by the Assessing Officer or furnish ground for taking action under section 263 by the Commissioner of Income-tax. In this connection, reference may be made in the case of Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83 (SC), wherein the Commissioner of Income-tax opined that the Income-tax Officer has passed the order of "nil" assessment without application of mind. The High Court accepted this part of the asserti....