TMI Blog1990 (3) TMI 58X X X X Extracts X X X X X X X X Extracts X X X X ..... e-tax Officer under section 143(3) read with section 144B of the Income-tax Act, 1961, respectively, on February 11, 1985, and March 24, 1986. Appeals were filed there against before the Commissioner of Incometax (Appeals) on March 12, 1985, and April 4, 1986. Those were dismissed. Second appeals there against before the Tribunal are still pending. At this stage, the Commissioner issued the impugned notices. The reason given for the issue of the notices was stated to be that the petitioners had collected Rs. 12,33,227 and Rs. 3,14,146 for the two years from the customers on account of "Hotel receipts tax" which amounts were neither paid to the Government nor refunded to the customers during the relevant previous years. Yet the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 263. Explanation (c) to section 263(1) was inserted with effect from June 1, 1988. After the insertion of that Explanation, only that part of the order of assessment merges in the appellate order which as a matter of fact has been the subject-matter of appeal. Placing then reliance on the Supreme Court decisions in the cases of Chowringhee Sales Bureau P. Ltd. v. CIT [1973] 87 ITR 542 and Sinclair Murray and Co. P. Ltd. v. CIT [1974] 97 ITR 615, Shri Jetley argued that the amounts collected by the petitioners as "Hotel receipts tax" were trading receipts and as such taxable as income. He fairly admitted that for the purpose of this petition this aspect is not very material as in the event of this court's upholding the Commissioner' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... before or after the 1st day of June, 1988, by the Assessing Officer shall include (i) an order of assessment made by the Assistant Commissioner or the Income-tax Officer on the basis of the directions issued by the Deputy Commissioner under section 144A; (ii) an order made by the Deputy Commissioner in exercise of the powers or in the performance of the functions of an Assessing Officer conferred on, or assigned to, him under the orders or directions issued by the Board or by the Chief Commissioner or Director General or Commissioner authorised by the Board in this behalf under section 120 ; (b) 'record' shall include and shall be deemed always to have included all records relating to any proceeding under this Act available at the time ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... inserted by the Finance Act, 1988, read as under: "Where any order referred to in this sub-section and passed by the Assessing Officer had been the subject-matter of any appeal, the powers of the Commissioner under this sub-section shall extend to such matters as had not been considered and decided in such appeal." The Explanation was then evidently prospective with effect from June 1, 1988. In the present case, the appeals having been not only filed but also disposed of before that date, this Explanation would have no effect whatsoever. Coming then to the amendment of the Explanation in 1989 with retrospective effect from June 1, 1988, it is seen that on the face of it there is some contradiction. The insertion of the words "filed on o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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