1990 (11) TMI 126

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.... JEEVAN REDDY C. J. -The Income-tax Appellate Tribunal has referred the following question under section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's opinion that the Additional Commissioner of Incometax did not apply his mind before initiating proceedings under section 263(1) of the Income-tax Act, 1961, and he abdic....

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....or the assessment years 1965-66, 1966-67 and 1967-68. He could not cancel the registration for 1964-65 because it was barred by the limitation prescribed in section 186. So far as 1968-69 is concerned, the Income-tax Officer approached the Additional Commissioner of Income-tax for cancellation of registration. The order of the Commissioner says, that, when the Income-tax Officer Approaching him th....

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....he Commissioner has practically abdicated his function to the Income-tax Officer inasmuch as he acted upon his request and sent the matter back to him. Thereupon, the present reference was obtained. Mr. Markanday Katju, learned counsel for the Revenue, assailed the correctness of the approach and the observation made by the Tribunal. He submitted that there was nothing wrong in the Income-tax O....

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.... of the Commissioner. What cannot, however, be denied is that the Commissioner must apply his mind to the material placed before him and satisfy himself that it is a case where he ought to exercise his revisional power. Then he may issue a show cause notice and, after affording an opportunity to the affected parties, pass final orders. After hearing the counsel for both the parties, we are unab....