- (1.) This appeal has been filed by the Department-Appellant under Section 260-A of the Income Tax Act against the judgment and order dated 31.03.2008 passed by the Income Tax Appellate Tribunal, Lucknow in I.T.A. No. 334/Luc/2003 for the assessment year 1993-94.
(2.) On 10.09.2008, a Division Bench of this Court had admitted the appeal on the following substantial questions of law: 1 Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was justified in upholding the order of the Commissioner of Income Tax (Appeals) and thus annulling the assessment order and directing the Assessing Officer to proceed Under Section 158BD of the I.T. Act, 1961. 2 Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal erred in not properly appreciating the fact that action taken Under Section 147 of the Act was in accordance with law as the information, that there is falsity in the disclosed material by the Assessee was brought to the notice of the A.O. at a later stage. The Income Tax Appellate Tribunal thus also erred in holding that A.O. could initiate proceedings only Under Section 158BD of the Act and not under Section 148(1) of the Act. 3 The Appellant craves to add, delete or modify any ground(s) either before or during the pendency of this appeal, with the permission of the Hon'ble Court.
(3.) The brief facts of the case are that the Respondent-Assessee Company is engaged in the business of construction of building. For the assessment year (1993-94) under consideration, an original assessment was completed under Section 143(3) of the Income Tax Act (hereinafter referred to as the Act). The original assessment completed on 27.03.1996 on an income of Rs. 2,66,080910/-as against the loss of Rs. 3,91,500/-disclosed by the Assessee in his return, but the return was revised on 30.09.1996 at an income of Rs. 26,764/-after giving appeal effect to CIT(A)'s order dated 12.08.1996, which was further revised Under Section 154 to NIL income.;