1995 (4) TMI 46

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....MA J.--This petition under section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as " the Act ", relevant to the assessment year 1985-86 has been preferred by the Revenue seeking a direction to the Income-tax Appellate Tribunal to state a case and refer to this court for its opinion the following question : " Whether, on the facts and in the circumstances of the case, the Income-t....

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....r section 143(1) of the Act by his order dated September 3, 1987. However, the Commissioner of Income-tax, Delhi-II, in exercise of his revisionary jurisdiction under section 263 of the Act called for and examined the assessment records of the assessee-company. On a perusal of the records and the facts appearing therefrom, the Commissioner of Income-tax held a prima facie view that the action of t....

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....is court in the case of CIT v. Stellar Investment Ltd. [1991] 192 ITR 287 held that even if it is assumed that the subscribers to the share capital were not genuine, the amount of share capital under no circumstances could be regarded as undisclosed income of the assessee-company. With the aforesaid observations, the Tribunal set aside the order of the Commissioner of Income-tax passed under secti....

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....ng reframed question to this court (at page 110) : " Was the Tribunal right in setting aside the order of the Commissioner under section 263 of the Income-tax Act and in holding that the assessment order of the assessee could not be said to be erroneous or prejudicial to the Revenue ? " Following the ratio of the aforesaid Full Bench decision of this court we also direct the Tribunal to stat....