TaxTMI 
TaxTMI 
2016 (6) TMI 1505
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....07/PAN/2016 is a stay petition filed by the assessee in assessee's appeal in ITA No. 190/PAN/2015. As the appeal of the assessee is being disposed of, the stay petition filed by the assessee no more survives. 2. Shri Sanjay S. Mudnur, CA represented on behalf of the assessee and Shri Nataraj S., Departmental Representative represented on behalf of the Revenue. 3. The appeal filed by the assessee was delayed by 11 days, for which the assessee has filed an application along with an affidavit for condonation of delay. The Revenue has not objected to the condonation of delay, insofar as the assessee has given justifiable cause for the delay in filing of the appeal. Consequently, the delay in filing of the appeal stands condoned and t....
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....a) of the Act; 3) against the action of the Commissioner of Income Tax (Appeals) in confirming the addition made by the Assessing Officer by invoking the provisions of sec. 69 of the Act in respect of the investment in tread dies, and 4) against the action of the Commissioner of Income Tax (Appeals) in confirming the addition on account of interest on the RD and interest on deposits. 5. At this point, it was asked to the Authorized Representative of the assessee as to how an appeal could be filed against the order giving effect to the order of the Commissioner of Income Tax passed under section 263 to the Commissioner of Income Tax (Appeals). It was submitted by the Authorized Representative of the assessee that as the Assessing Officer ....
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.... representing the addition made under section 69, representing the investment in thread dies. In para 7.2 at page No. 13, Commissioner of Income Tax has directed the Assessing Officer to modify the original assessment by bring to tax the bank interest, not offered to tax by the assessee. In para 4.5 at page No. 6, the Commissioner of Income Tax has directed the Assessing Officer to modify the original assessment made by disallowing the entire job work charges paid to the two sister concerns under section 40(a)(ia) of the Act and in para 8, the Commissioner of Income Tax has specifically held that the "original assessment order passed by the Assessing Officer was erroneous and prejudicial to the interest of the Revenue and accordin....
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....fying the assessment, or cancelling the assessment and directing a fresh assessment. The words "pass such order thereon as the circumstances of the case justify" shows that it is the order under section 263 which has to be looked into to find out as to what is the intention of the Commissioner. In the present case, clearly there is no intention on the part of the Commissioner to cancel the assessment and direct a fresh assessment, but it is clear one where the original assessment has been modified by him. Once the Principal Commissioner/Commissioner passes an order under section 263 cancelling the amendment and directing a fresh assessment, then the Assessing Officer gives effect to such order under section 153(2A) which also prescribes the....
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....es for the appeal against the order under section 263 to the appellate Tribunal. Thus, it can be noticed that an order under section 263 can be one where there is an enhancement or modification of the assessment and one where there is cancelling of the assessment and directing of the fresh assessment. When it is an issue of enhancing or modifying the assessment order, then the Assessing Officer only gives effect to the order under section 263 by re-computing the total income / total tax liability and such orders where Assessing Officer has given effect by only re-computing as per order of the Commissioner of Income Tax under section 263 is not appealable before the Commissioner of Income Tax (Appeals). In a case where the Commissioner of In....