1984 (8) TMI 104

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....vant to assessment year. The CIT was, however, of the view that r. 115, prior to its amendment by the Income-tax (Eighth Amendment) Rules, 1977, w.e.f. 1st Nov., 1977, would be applicable to the asst. yr. 1977-78 under consideration here and, therefore, the conversion should have been done at the rate of £1 equal to Rs. 18 instead of at the rate of £ 1 equal to Rs. 15.13 as was done by the IAC (Assessment). He, therefore, considered that the assessment order was erroneous and prejudicial to the interests of there Revenue. The CIT, therefore, by order under s. 263 of the IT Act, 1961, directed the IAC (Assessment) to convert the income at the rate of £ 1 equal to Rs. 18 and amend the assessment accordingly. The assessee is aggrieved by th....

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....bunal in the case of Biju Patnaik vs. WTO (1981) 12 TTJ (Del) 25 (SB) : (1983) 3 ITD 693 (Del) (SB) where, in similar circumstances the Tribunal held that r. 1BB 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 r. 115 was brought about w.e.f. 1st Jan., 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 Vyas to the proposed r. 1D of the Wealth-tax Draft (Amendment) Rules, 1981, which, according to sub-r. (3)(c) thereof, would not be applicable to an....

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....der s. 263. 5. We have carefully considered the rival submissions. The power of the Board to make rule is by s. 295 of the IT Act, 1961, the provision 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— (a) the ascertainment and determination of any class of income; (b) the manner in which and the procedure by which the income shall be arrived at in the case of— (i) income deri....