1989 (2) TMI 95

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....ssessments were set aside under section 263 by the Commissioner of Income-tax, to be made de novo, on the ground that the said assessments were erroneous and prejudicial to the interests of the Revenue. However, on appeal by the assessee, against the orders passed by the Commissioner of Income-tax, the Income-tax Appellate Tribunal restored the assessment orders and vacated the orders passed by the Commissioner. The applications under section 256(1) having been dismissed, the Commissioner has now come up in these applications. The following two questions, said to be questions of law, are proposed in these applications : "1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that there were no ma....

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....ar 1987-88. The Tribunal also referred to a circular issued by the Directorate of Inspection (Income and Audit) being Circular No. 176 dated August 26, 1987, addressed to all the Commissioners of Income-tax with regard to assessments framed under section 143(1) of the Act. The said circular stated that no remedial action under section 263 is necessary in "summary assessment" where glaring and apparent mistakes in the computation of income have been detected resulting in loss of revenue. In the ultimate analysis, the findings of the Tribunal were to the following effect: "After closely perusing the statements of income filed, to which brief reference has been made above, copies of which have been made available, as also other factors rega....