1990 (10) TMI 163

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..... der section 263 of the Income-tax Act, 1961. 2. On a review of the assessments for the assessment years 1982-83 and 1984-85, the Commissioner was of the opinion that the assessment had failed to verify and determine the admissibility of certain deductions and, therefore, they were required to be re-done by the ITO. The items which are under consideration are, for the assessment year 1982-83 the d .....

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..... e of this expense. " Similarly, in the fresh assessment order for the assessment year 1984-85 also he has refrained from dealing with the other two disallowances. It was contended on behalf of the assessee that since the period of limitation for making the fresh assessments prescribed under section 153(2A), namely two years from the end of the financial year in which the order under section 263 w .....

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..... Commissioner is whether he was right in assuming that the ITO had failed to verify and determine the admissibility of the claims of the assessee. In this regard it is pointed out on behalf of the assessee that the queries had been raised by the ITO on these issues in respect of which the assessee had given its representation and details of the claim before the ITO which were considered before mak .....

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..... ing sick. Moreover, there being a separate provision for criminal prosecution and imposition of fine under the Employees Provident Fund Act, the damages recovered under section 14B of that Act amounts only to compensatory interest for the delay in payment of the contribution and is not in the nature of a penalty for any contravention of law. This is the view taken in the case of Anglo-French Texti .....

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..... ing the reply of the company dated 25-1-1985 to his queries in that regard. In the circumstances, we are of the opinion that the order of the Commissioner under section 263 was without jurisdiction inasmuch as the orders of assessment were correct and could not be regarded as erroneous or prejudicial to the revenue. His order is cancelled. 6. The appeals are allowed
Case laws, Decisions, Judg .....

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