Home Case Index All Cases Indian Laws Indian Laws + HC Indian Laws - 2015 (4) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (4) TMI 108 - KARNATAKA HIGH COURTDisallowance of substantial portion of the expenditure - Addl. Commissioner of Commercial Taxes invoked the power under Sec. 35 of the Act on the ground that the order passed by the First Appellate Authority is erroneous and prejudicial in the interest of the revenue and decided matter in favour of assessee - Commissioner of Commercial Taxes initiated suo-motto proceedings under Sec.35A of the Act and set aside the said order and restored the order of the First Appellate Authority, the effect of which is the Assessing Authority has to consider the case on merits afresh - Held that:- When a power is conferred on the revision authority to initiate suo-motto proceedings on the ground that the order is erroneous and prejudicial in the interest of revenue in that jurisdiction, the only order that could be passed is to set aside the erroneous order and restore the order of the Assessing Authority. Unfortunately, without keeping this basic principle in mind, the order of the First Appellate Authority is set aside. The order of the Assessing Authority is also set aside. The revision authority frames the assessment for the first time, granting benefits to the assessee. It is totally impermissible in law. Therefore, rightly, the Commissioner of Commercial Tax, in a suo-motto proceedings, has set aside the said order. In that view of the matter, we do not see any justification to interfere with the well-considered order passed by the revision authority. - Decided against Assesseee.
|