- (1.) THIS is an application under S. 256(2) of the IT Act, 1961, filed at the instance of the CIT, Meerut.
(2.) WE have heard the learned counsels for the parties. Originally, an assessment under S. 143(3) was completed against the respondent-assessee wherein the income return was accepted. Later, the assessment order was set aside under S. 263 of the Act. The assessee had claimed deduction under S. 10(6)(viia) of the Act which was subsequently withdrawn by the ITO in the assessment order which was made in pursuance to the directions contained in the order passed under S. 263. The assessee filed appeal against the assessment order which was allowed on the view that since the order under S. 263 itself had been set aside on appeal by the Tribunal, the consequential assessment order could not be allowed to stand. Against the appellate order, the Revenue preferred an appeal before the Tribunal which was dismissed and the plea taken by the Departmental Representative in support of the assessment order on merits was not accepted. The Revenue then filed an objection under S. 256(1) which was also rejected, hence, this application.
(3.) WE may observe as informed by the standing counsel that against the order of the Tribunal in which the order under S. 263 was set aside, the matter is pending in reference before this Court on certain questions which were referred under sub-s. (1) of S. 256 and some other questions have been referred under sub-s. (2) of S. 256. This position is not denied by the learned counsel for the assessee.;