S.K.KULSHRESTHA,J. - (1.)BY this appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as, 'the Act'), the appellant -assessee assails the order dated 30 -5 -2002, of the Income Tax Appellate Tribunal, Indore, in Income -tax Appeal No. 216/Ind/2000, pertaining to the assessment year 1995 -96. The appeal has been admitted on the following questions of law : 1. Whether under the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that after full and final settlement of the tax arrears under Section 90 of the Finance (No. 2) Act, 1998 in respect of all the matters, the Commissioner of Income -tax had jurisdiction to revise the said assessment order under Section 263 of the Income Tax Act, 1961 ?
(2.)WHETHER under the facts and in the circumstances of the case, the Appellate Tribunal is justified in holding that the Commissioner of Income -tax had jurisdiction to revise the initial assessment order when it was rectified under Section 154 of the Income Tax Act, 1961 and did not survive after having undergone rectification ?' The appellant is a company registered under the Companies Act, 1956, 2 engaged in manufacture of steel pipes, tubes and cold rolled formed sections. Assessment order for the assessment year 1995 -96 was passed by the Deputy Commissioner of Income -tax (Assessment), Special Range -2, Indore, on 27 -3 -1998, under Section 143(3) of the Act. Aggrieved by the said order, the assessee filed an appeal before the Commissioner (Appeals). However, on finding that there was a mistake in calculation of depreciation, the assessing officer rectified the assessment suo motu under the provisions of Section 154 of the Act, on 28 -1 -1999. 2. The appellant thereafter filed a declaration under Section 88 of Chapter IV of the Finance (No. 2) Act, 1998, called the 'Kar Vivad Samadhan Scheme, 1998', (hereinafter referred to as, 'the KVS Scheme'), on 31 -12 -1999, after rectification of the order under Section 154 of the Act. The declaration was accepted under Section 92 of the KVS Scheme as full and final settlement by the designated authority under the KVS Scheme, vide order dated 25 -2 -1999 (annexure C -2). The appellant paid tax of Rs. 1,53,774 in accordance therewith. A certificate dated April 28, 1999, as contemplated under Section 90(2) of the KVS Scheme (annexure -D), was duly issued and the matter was finally settled.
In view of the above settlement, the appeal pending before the Commissioner (Appeals) was dismissed as infructuous vide order annexure E. However, in purported exercise of the power under Section 263 of the Act, the Commissioner of Income -tax issued notice (annexure Fl) proposing to reopen the assessment.

(3.)THE appellant contends that as a result of rectification of the assessment, it would be the rectified order that would prevail and when the entire material was placed in the declaration made under the KVS Scheme, it was not open to the Commissioner (Appeals) to reopen the issue in purported exercise of the power under Section 263 of the Act. Accordingly, the action was opposed vide annexure D. The respondent,, however, passed an order under Section 263 (annexure H) on March 29, 2000, and set aside the assessment with a direction to recalculate the deductions under Sections 80HH, 80I and 80HHC. The appeal filed to the Tribunal was dismissed in so far as the above claim was concerned.