1983 (4) TMI 82

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....r, we have informed ourselves from the correspondence that passed between the authorities below and the CIT that action under s. 263 had been proposed by the ITO because of the audit objection based upon the judgment of the Hon'ble Punjab and Haryana High Court in the case of Hardit Singh Pal Chand (1979)120 ITR 289 (P&H). On receipt of the proposal, the CIT issued a notice to the assessee to show cause why registration originally granted need not be set aside. After this, affording the assessee as opportunity of being heard, he made the impugned order by which he set aside the original order made by the ITO and directed him to pass fresh order after affording reasonable opportunity of being heard to the assessee.This under challenge before....

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.... be set a side and in it is place the original order made by the ITO be restored. 4. The revenue opposed these submissions. The senior departmental representative, Shri R.K.Bali, contended that initiative from the authorities working under the CIT for proposing action under s. 263 is not debarred by law in view of the ratio decidendi of the judgment of the Calcutta High Court in the case of Smt. Sumitra Devi Dhirwal (1972)84 ITR 26(Cal)The ld. departmental representative also contended that all statutory enactments are included in the word "record" used in s. 263. At the time of granting registration to the assessee originally, the ITO had not made any enquiries and when he does so, the order that results therefrom is an order which in l....