1990 (8) TMI 105

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....and was correct in directing him to make a fresh assessment ?" The assessee is carrying on business in vegetables, ghee and Indian made foreign liquor. The assessment year in question is 1978-79. During the relevant previous year, the assessee received a sum of Rs. 31,79,427 by way of refund of excise duty. The assessee claimed in the return filed by him that he has placed this amount in suspense account and not in the profit and loss account and accordingly claimed that this amount should not be included in his income. He stated before the Income-tax Officer that a large part of this amount was claimed by Ganga Sugar Mills Ltd. who have filed a suit and also a writ petition in this court in that behalf. It was also stated by the assesse....

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....making proper enquiries and recording proper finding. The assessee filed an appeal before the Income-tax Appellate Tribunal. The Tribunal dismissed the appeal holding that the exercise of power of revision was proper and that there was nothing illegal about it. The first contention urged by Sri Vikram Gulati, learned counsel for the assessee, is that the Commissioner had not recorded a finding that the Income-tax Officer's order was erroneous and that unless he records that finding as well as an additional finding that the order of the Income-tax Officer is prejudicial to the interests of the Revenue, he cannot invoke his power under section 263 of the Act. As a proposition of law, the contention is correct but we are not satisfied th....