1997 (1) TMI 12

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....t ?" In the assessment year 1971-72, the Income-tax Officer had made an assessment. The principal matter was assessment of capital gains arising on the sale of buses. The assessment matter came up in appeal at the instance of the Income-tax Officer before the Tribunal. Then the Tribunal referred the case back to the Income-tax Officer to make a fresh assessment. While making the fresh assessment, the Inspecting Assistant Commissioner to whom the Income-tax Officer had under section 144A of the Income-tax Act, 1961, referred the matter for guidance had issued directions for the guidance of the Income-tax Officer, which directions according to the said provision are binding on the Income-tax Officer. In the directions issued by the Inspectin....

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....ng counsel for the Department relies upon various decisions of various High Courts. According to learned standing counsel, the assessment order passed by the Income-tax Officer in accordance with the direction given by the Inspecting Assistant Commissioner under section 144A is also amenable to the jurisdiction of the Commissioner of Income-tax under section 263 of the Income-tax Act, 1961. Therefore, according to learned standing counsel, this order by the Tribunal in holding that the Commissioner of Income-tax was not correct in exercising the jurisdiction under section 263 of the Act is not sustainable. On the other hand, learned counsel for the assessee supported the order passed by the Tribunal. We have heard the rival submissions. ....

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....et aside and the order passed by the Income-tax Officer was restored. The question whether the order passed by the Income-tax Officer in accordance with the directions given by the Inspecting Assistant Commissioner under section 144A or under section 144B of the Act is amenable to the jurisdiction of the Commissioner of Income-tax under section 263 of the Act came up for consideration before the Gauhati High Court in Tarajan Tea Company Pvt. Ltd. v. CIT [1994] 205 ITR 45, wherein the Gauhati High Court following the decisions cited hereunder : CIT v. Christian Mica Industries Ltd. [1979] 120 ITR 627 (Cal) ; CIT v. K.L. Rajput [1987] 164 ITR 197 (MP) [FB] ; Torson Products Ltd. v. CIT [1988]173 ITR 611 (AP); CIT v. Vithal Textiles [1989]....