TaxTMI 
TaxTMI 
2021 (8) TMI 824
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....mitted by a Bench of this Court on the following substantial questions of law: a) Whether the Assessing Officer on careful scrutiny of the entire material on record has accepted the submission of the assessee and passed the assessment order which was in conformity with the law as declared as on that day? b) Whether the Commissioner was justified in interfering with the said finding on the basis of the judgment rendered subsequent to the said order and the Tribunal was justified in upholding the said order? 2. Facts leading to filing of this appeal briefly stated are that the assessee is a public limited company engaged in the business of manufacture and sale of petrochemicals. The assessee filed the returns of income for Assessment Y....
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....me Tax passed an order on 21.12.2009 and set aside the assessments and directed the Assessing Officer to consider the law laid down by Supreme Court in 'CIT Vs. T.V. SUNDARAM IYENGAR AND SONS LTD.' (1996) 222 ITR 344 (SC) and decision of the Bombay High Court in 'SOLID CONTAINERS LTD. Vs. DCIT & ANR.' 308 ITR 417. The assessee thereupon filed an appeal before the Tribunal. The Tribunal, by order dated 07.03.2011, dismissed the appeal preferred by the assessee. In the aforesaid factual background, this appeal has been filed. 4. Learned counsel for the assessee submitted that the Assessing Officer had examined the issue and made enquiries and had passed an order on the basis of material available on record and the order passe....
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.... 429 ITR 493 (GUJ), 'CIT & ANR. Vs. CYBER PARK DEVELOPMENT AND CONSTRUCTIONS LTD.' (2021) 430 ITR 55 (KAR), MAHINDRA AND MAHINDRA, supra, 'CIT & ANR. Vs. COMPAQ ELECTRIC LTD.' (2012) 249 CTR 0214 (KAR) AND 'CIT & ANR. Vs. COMPAQ ELECTRIC LTD. (2019) 261 TAXMAN 0071 (SC). 5. On the other hand, learned counsel for the revenue submitted that the Assessing Officer passed an order of assessment in contravention of the law laid down by the Supreme Court in 'CIT Vs. T.V.SUNDARAM IYENGAR AND SONS LTD.' supra and therefore, the order was passed in ignorance of law and an order passed in ignorance of law constitutes a ground for invocation of powers under Section 263 of the Act in view of judgment of the Supreme Co....
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....ly when an order is erroneous that the section will be attracted. An incorrect assumption of facts or an incorrect application of law will satisfy the requirement of the order being erroneous. In the instant case, the issue which arises for our consideration is whether the order passed by the Assessing Officer is erroneous as while passing the order there has been an incorrect application of law. The relevant extract of the order passed by the Commissioner of Income Tax dated 21.12.2009 reads as under: 9. The assessee's submissions had been carefully considered with reference to the facts of the case and the relevant provisions of the I.T. Act 1961. It is seen from the records that the Assessing Officer has not properly applied his min....
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.... the aforesaid judgment of the Hon'ble Supreme Court in the case of T.V. Sundaram Iyengar and Sons Ltd. The facts of the case of CIT vs. Industrial Credit and Development Syndicate Ltd. Reported in 285 ITR 310 (KAR) concerning repurchasing of debentures from debenture holders by a nominee for a price below the face value, are distinguishable from the assessee's case. With regard to the assessee's submission that the above mentioned Supreme Court decision was distinguished in the later decision of the Hon'ble Supreme Court in the case of Chief CIT vs. Kesaria Tea Co. Ltd reported in 254 ITR 434, it is necessary to mention that the Hon'ble Supreme Court had only observed that the earlier decision in the case of T.V. Sundar....