TaxTMI 
TaxTMI 
1994 (4) TMI 51
X X X X Extracts X X X X
X X X X Extracts X X X X
....g the order of the Commissioner of Income-tax (Appeals) in not cancelling the assessment in terms of section 129 of the Income-tax Act, 1961 ? " The brief facts of the case are that while finalising the assessment for the accounting period ending on March 31, 1976, i.e., assessment year 1976-77, a draft order under section 144B of the Act was sent by the Income-tax Officer to the Inspecting Assistant Commissioner, for his approval. The Inspecting Assistant Commissioner gave certain directions and returned the draft order to the Income-tax Officer. After the draft order was sent, there was a change of incumbent and by the successor Income-tax Officer, who received the directions under section 144B, assessment was framed. The change of the....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ithin the meaning of the proviso to section 129. Since the entire assessment was set aside, the Tribunal refused to interfere with the order passed by the Commissioner of Incometax (Appeals). The provisions of section 292B and the fact that, in respect of three similar appeals for the years 1973-74, 1974-75 and 1975-76 directions were same and the ground as raised in this appeal was given up (sic). The submission of learned counsel for the petitioner is that the Income-tax Officer has not followed the directions of the Commissioner of Income-tax (Appeals) wherein it was observed that the Assessing Officer will redo the assessment as per law and after observing the principles of natural justice, providing adequate opportunity to be heard ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ing Officer to proceed from the stage at which the proceedings were left by his predecessor. Under section 144B (since deleted with effect from April 1, 1989) a draft order is required to be sent by the Income-tax Officer to the Inspecting Assistant Commissioner, so that no injustice is done to him. The assessee has to submit his objections with regard to the variations proposed by the Income-tax Officer within seven days of the receipt of the draft order. The Inspecting Assistant Commissioner considers the draft order and the objections on record and no prejudicial orders can be passed against the assessee without hearing him. The directions given by the Inspecting Assistant Commissioner are binding on the Income-tax Officer. Thus, if ther....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ioner; (2) it is one where several additions and disallowances of enormous amounts have been made without understanding the issues involved and without any basis whatsoever. This observation of the Commissioner of Income-tax (Appeals) makes it clear that the directions given by the Inspecting Assistant Commissioner (Assessment) have to be given afresh as the assessee was not given adequate opportunity by him. The order by way of directions, therefore, was found not to be in accordance with law. The various additions proposed in the draft order were without any basis, and, therefore, even the draft order was not in accordance with law. Thus, the draft order and the directions no longer survive and fresh assessment has to be made in accordanc....