2000 (12) TMI 66

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....e of the Revenue, the Income-tax Appellate Tribunal, Delhi Bench-D (in short, "the Tribunal"), has referred the following question, under section 256(1) of the Income-tax Act, 1961 (in short "the Act"), for the opinion of this court : "Whether, on the facts and in the circumstances of the case, the Tribunal is legally correct in holding that the Commissioner of Income-tax had no jurisdiction un....

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.... However, relief under section 89 of the Act was allowed. The assessment was completed on 18th October, 1975. On 31st December, 1976, the assessee approached the Income-tax Officer for rectification of the order under section 154 of the Act taking the plea that terminal benefits were entirely exempted from tax in view of the decision of the Bombay Bench of the Tribunal in the case of one P. Murali....

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....1976, issued by the Commissioner of Income-tax. According to the said circular, the Central Board of Direct Taxes (in short. "the Board") had in their letter No. 173/126-76-II(Al), dated 30th May, 1976, accepted the decision of the Bombay Bench as laying down the correct position in law. The Commissioner of Income-tax had, therefore, directed that whenever an assessee applied under section 154 poi....

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.... "When the Income-tax Officer passes an order in his own discretion and that order is found to be erroneous or prejudicial to the interests of the Revenue under section 263 is the power to the Commissioner of Income-tax to rectify it but when an Income-tax Officer passes an order not in his own discretion or wisdom but following the directions of the Commissioner of Income-tax who follows in tur....