- (1.) THE Income Tax Appellate Tribunal, Allahabad has refer -red the following question of law under section 256(1) of the Income Tax Act, 1961, hereinafter referred to as 'the Act', for opinion to this Court: 'Whether in law and circumstances of the case, the ITAT was justified in holding that the order of the I.A.C. (Asst.) could not be revised by the Commissioner of Income -tax in exercise of his powers under section 263 of the Income Tax Act, 1961 and thereby setting aside the order under section 263 passed by him?' In favour of revenue.
(2.) THE reference relates to the assessment year 1978 -79. Briefly stated the facts giving rise to the present reference are that for the assessment year in question the assessment was completed by the Inspecting Assistant Commissioner (Assessment) on 30 -1 -1982. The Commissioner of Income -tax after examining the records of the case found that no penalty proceeding under section 273(b) of the Act was initiated nor interest under section 217 of the Act was charged. He was, therefore, of the opinion that the assessment order was erroneous and prejudicial to the interest of the revenue and accordingly directed the Inspecting Assistant Commissioner (Assessment) to charge interest under section 217 of the Act and to initiate proceedings under section 273(b) of the Act. Feeling aggrieved by the said order, the respondent had filed an appeal before the Income Tax Appellate Tribunal. The Tribunal has accepted the submission made by the respondent that the Commissioner had no jurisdiction to cancel the order passed by the Inspecting Assistant Commissioner (Assessment) before the Explanation was added w.e.f. 1 -10 -1984.
(3.) WE have heard Sri A.N. Mahajan, learned Standing counsel appearing for the revenue. None has appeared for the respondent.;