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2016 (9) TMI 703 - HC - Income TaxRevision u/s 263 - Whether the ITAT has erred in not considering that no appeal is maintainable before CIT(A) against the order passed by the A.O. under the provisions of Section 143(3) read with Section 263 of the Act when the assessee has not filed the appeal against the order u/s. 263 of the Act? - Held that:- It is undoubtedly true that if in the revisional order, the Commissioner has made any conclusive remarks or given directions which would finally decide the rights of the parties, the assessee without challenging such findings, cannot dispute the same when it comes to the Assessing Officer giving effect to such directions. However, if the order of the Commissioner merely remanding the proceedings before the Assessing Officer without specific directions for carrying out assessment in a particular manner, the Assessing Officer would be free to carry out the assessment in accordance with law and may be in a given circumstance, bearing in mind the observations made by the Commissioner in the revisional order. In such a situation, when the Assessing Officer is not merely giving effect to the order of the Commissioner but is re-framing the assessment in accordance with law, his order is always open to challenge by the assessee on merits. The assessee need not question the authority of the Assessing Officer to pass such order. He accepted the revisional order and its directions participated in the fresh assessment proceedings and carried a feeling that it had satisfied the Assessing Officer about the validity of the claims. If the order of assessment belied such feeling of the assessee, it was always open for the assessee to carry the issues in appeal. Nothing prevented the assessee from questioning the directions of the Assessing Officer. The Revenue's stand on this issue is, therefore, not correct.
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