| Case ID |
00b37f70-a831-4825-9092-92d7929573a2 |
| Body |
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| Case Number |
D-2741 of 1987 |
| Decision Date |
Jan 01, 1987 |
| Hearing Date |
Jan 01, 1987 |
| Decision |
The Bombay High Court held that the Commissioner could not exercise revisional powers under section 263 of the Income-tax Act when the order passed by the Income Tax Officer (ITO) had merged in the order passed by the Appellate Assistant Commissioner (AAC). The court emphasized that the exercise of revisional power was without jurisdiction and that the appeals against the order of the revisional authority should have been entertained. The Tribunal's dismissal of the appeals was deemed unjustified, and the court ruled in favor of the petitioner, allowing the appeals against the revisional authority's order. |
| Summary |
In this landmark case, the Bombay High Court addressed the limitations of the Commissioner's powers under section 263 of the Income-tax Act, 1961. The case centered around Remex Constructions, which faced challenges regarding the assessment of gross profits due to inadequate stock records. The ITO had estimated profits at a flat rate, which was contested by the firm. The AAC granted relief, but the Commissioner subsequently intervened, leading to disputes over jurisdiction. The court clarified that once an order is appealed and modified by the AAC, the ITO's original order ceases to exist, thus nullifying the Commissioner's authority to revise it. This ruling reinforces the importance of procedural integrity in tax assessments and the rights of taxpayers to contest administrative decisions. The decision is significant for tax law practitioners and highlights key aspects of revenue protection. |
| Court |
Bombay High Court
|
| Entities Involved |
Not available
|
| Judges |
PENDSE, J.
|
| Lawyers |
V.J. Pandit,
G.S. Jetty,
D.H. Parekh
|
| Petitioners |
Remex Constructions
|
| Respondents |
First Income Tax Officer
|
| Citations |
1987 SLD 3232,
(1987) 166 ITR 18
|
| Other Citations |
CIT v. Tejaji Farasram Kharawala [1953] 23 ITR 412 (Bom.)
|
| Laws Involved |
Income-tax Act, 1961
|
| Sections |
263,
853
|