- (1.) ON March 29, 1980, the Income-tax Officer served a draft assessment order under Section 144b of the Income-tax Act, 1961 (hereinafter called "the Act"), on the assessee. On April 3, 1980, the assessee filed objections and the matter was sent to the Inspecting Assistant Commissioner and on receipt of the directions from him, the matter was taken up by the Income-tax Officer. On May 22, 1980, the assessee filed a letter before the Income-tax Officer to claim weighted deduction under section 35b of the Act. The Income-tax Officer, by order dated September 23, 1980, framed an assessment and declined to give the benefit of weighted deduction as this matter was not raised in the objections filed against the draft assessment order. On the assessee's appeal, he failed to get the benefit of weighted deduction from the Commissioner of Income-tax (Appeals), but, on further appeal, the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal") allowed the point to be raised and sent back the case to the Commissioner of Income-tax (Appeals) for decision of the appeal afresh.
(2.) AT the instance of the Revenue, the following questions have been referred for opinion of this court: " (1) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in restoring the appeal on the issue of the additional claim for weighted deduction under Section 35b made by the assessee, vide his letter dated May 22, 1980, for fresh disposal in accordance with law ? (2) Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in maintaining that the assessee was entitled to revise the return of income before the assessment was made although the draft assessment had been made and sent to the Inspecting Assistant Commissioner for issuing directions under Section 144b ?"
(3.) THE only point raised before us at the instance of the Revenue is that the assessment proceedings were being taken under Section 144b of the Act and the Income-tax Officer had the jurisdiction to deal with only those matters which were covered by the objections raised against the draft assessment order and as per directions of the Inspecting Assistant Commissioner and since there was no direction from the Inspecting Assistant Commissioner with regard to the grant of weighted deduction under Section 35b of the Act, the matter could not be considered by the Income-tax Officer or any other appellate authority, and, therefore, the Tribunal has erred in law in allowing the point to be raised at the appellate stage and in sending back the case to the Commissioner of Income-tax (Appeals) for fresh decision.;