TaxTMI 
TaxTMI 
1989 (2) TMI 81
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....eted the addition of Rs. 90,000 made, the Tribunal is justified in not considering the case on merits ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal is right in law and fact in holding that the question of restoration of the addition made to the gross profit does not arise at present and is not the 'order' of the Tribunal vitiated for not considering the issue on merits ?" The respondent in this reference is an assessee to income-tax. We are concerned with the assessment year 1975-76. The assessee is a wholesale dealer in textiles. For the year 1975-76, the book results were rejected and gross profit was estimated by the Income-tax Officer. He made an addition of Rs. 90,000 to the income returned. Th....
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....oceedings as "N. A.". In other words, a nil assessment order was passed dated October 31, 1980. Thereafter, when the appeal filed by the Revenue, I.T.A. No. 251/Coch. of 1979, from the original assessment proceedings came up for hearing, the Tribunal held, that in view of the proceedings initiated under section 147(b) of the Act and the revised assessment order dated October 31, 1980, the original assessment (dated March 7, 1978) against which the Revenue had filed I.T.A. No. 251/Coch. of 1979, has been annulled, there is no question of restoration or deletion of the addition to the gross profit and, in this view of the matter, concluded that the original assessment having been set aside, there was no necessity to go into the merits of the ....
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....ffect, the Tribunal took the view that the original assessment order passed by the Income-tax Officer, dated March 7, 1978, was set aside as it was so longer in existence and so in the appeal filed by the Revenue, there was no question of restoring the said order. It is settled law that the revised order or the order passed in the reassessment proceedings dated October 31, 1980, recording that the reassessment is closed as "N. A." (not assessed or not assessable or nil assessment), is a final order, lawfully terminating the assessment proceedings. See the decision of the Supreme Court in Esthuri Aswathiah v. ITO [1961] 41 ITR 539. The proceedings dated October 31, 1980, closing the proceedings as "N. A." is an assessment order. (See also....
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....ed in the affirmative, against the Revenue and in favour of the assessee. Question No. 2 should be answered in the negative, against the Revenue and in favour of the assessee. Counsel for the Revenue, Mr. P. K. R. Menon, submitted that by passing the revised order dated October 31, 1980, the Income-tax Officer has committed an illegality. If the effect of the revised order dated October 31, 1980, is to completely supersede or annul the original order passed by the Income-tax Officer dated March 7, 1978, the assessment, even on the admitted income, may stand nullified in this case and this will result in very unsatisfactory state of affairs. We are of the view that, if the revised proceedings of the Income-tax Officer, dated October 31, 1....