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2008 (6) TMI 633 - HC - Income TaxRevision u/s 263 - Seven notices issued by the CIT - seeking to revise the earlier assessment orders for a period of seven years - respondent No. 1 proceeded further and passed a revised assessment order with regard to all the aforesaid seven assessment years by seven different orders of the same revising the aforesaid assessment. HELD THAT:- From the records, It is clear that the petitioner had approached under the Amnesty Scheme and after discussion with the Commissioner of Income Tax, it was agreed that rate of taxable income should be 8 per cent instead of 4 per cent and accordingly he was directed to file revised return at 8 per cent. Even thereafter, the second CIT, on scrutiny and verification found that the earlier decision of the CIT at 8 per cent to be fair and justifiable and accordingly, had issued directions to the LAC, BSD(S) Range, Bombay. It is very pertinent to note that the revised assessment orders passed by the concerned ITO were solely based on the directives of the CIT, in fact the assessment orders do not indicate any other reason other than the directions mentioned by the CIT also could not dispute that the Department was bound by the Circulars. We find that the ITO had passed revised assessment order based on the revised return at 8 per cent. The said order is solely based on the directives given by the earlier CIT and the same could not be revised by the subsequent CIT exercising the power u/s 263. Over and above, we do not find any error or anything unsustainable in law. On the contrary, it appears that the second CIT consistently took a view that 8 per cent would be a fair percentage and a third CIT could not consider the same as 'erroneous' or 'unsustainable in law'. In fact both the notices which were issued u/s 263 as well as revised assessment orders passed by the CIT are totally unsustainable in law for the aforesaid reasons. Hence, all the seven notices issued u/s 263 as well as seven assessment orders passed by the CIT stand quashed and set aside. Accordingly, rule is made absolute with no order as to costs.
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