1984 (8) TMI 102

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.... to Rs. 15.13, i.e., the rate of exchange at the end of the previous year relevant to the assessment year. The Commissioner was, however, of the view that rule 115 of the Income-tax Rules, 1962 ('the Rules'), prior to its amendment by the Income-tax (Eighth Amendment) Rules, 1977, with effect from 1-11-1977, would be applicable to the assessment year 1977-78, under consideration here and, therefore, the conversion should have been done at the rate of pound 1 equal to Rs. 18 instead of at the rate of pound 1 equal to Rs. 15.13, as was done by the IAC. He, therefore, considered that the assessment order was erroneous and prejudicial to the interests of the revenue. The Commissioner, therefore, by an order under section 263, directed the IAC t....

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...., i.e., pound 1 equal to Rs. 15.13, as was rightly done by the IAC. Our attention was invited to the decision, of the Special Bench of the Tribunal in the case of Biju Patnaik v. WTO [1983] 3 ITD 693 (Delhi), where, in similar circumstances, the Tribunal held that rule 1BB of the Wealth-tax Rules, 1957 was a rule of procedure and would, therefore, apply to all the pending proceedings, including the appeal proceedings, on the date of the notification of the rule. Elaborating his arguments, Shri Vyas submitted that the amendment to rule 115 was brought about with effect from 1-11-1977 and would, therefore, be applicable to the assessment under consideration here which was completed in March 1980. Reference in this connection was made by Shri ....

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....1-11-1977, would have no application to the assessment year 1977-78 under consideration in the present appeal. On this basis, he justified the order of the Commissioner under section 263. 5. We have carefully considered the rival submissions. The power of the Board to make rules is by section 295 of the Act, the provisions of which, relevant to the present appeal, are as follows : " 295. (1) The Board may, subject to the control of the Central Government, by notification in the Gazette of India, make rules for the whole or any part of India for carrying out the purposes of this Act. (2) In particular, and without prejudice to the generality of the foregoing power, such rules may provide for all or any of the following matters-- ....