TMI Blog2006 (8) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... e learned Tribunal dismissed the appeal filed by the assessee against the order dated November 14, 1996, passed by the Commissioner of Income-tax, Bhopal, whereby revisions filed by the assessee dismissed. This appeal was admitted by this court for final hearing on the following substantial questions of law on February 11, 2000: (i) 'Whether the Commissioner of Income-tax is entitled to set aside the assessment order passed by the Assessing Officer, when the case is connected with the provisions of section 144A of the Income-tax Act, 1961, without setting aside the order passed by the Deputy Commissioner in view of the provisions of section 144A of the Act ? (ii) Whether the Income-tax Commissioner is empowered to set aside the order of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... appeals were filed by the assessee on February 4, 1997, which were dismissed on January 29, 1999, against which the present appeal is filed. 3 Shri G. M. Chaphekar, learned counsel for the appellant, submits that the revision is maintainable only if the order is illegal and is prejudicial to the interests of the Revenue. It is submitted that even if one of the ingredients is missing, then the revision is not maintainable. Learned counsel further submits that the learned Commissioner had no jurisdiction to examine the legality of the directions dated March 23, 1995, issued by the Deputy Commissioner of Income-tax under section 144A of the Act. 4 Shri R. L. Jain, learned counsel for the Revenue, raises a preliminary objection and subm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s also not objected at the initial stage and this court is bound to decide the appeal on the merits because at least one appeal has been filed properly, therefore, ignoring the technical objection raised by the Revenue, this appeal is being disposed of on the merits. 'Section 144A of the Income-tax Act reads as under : "144A. Power of Joint Commissioner to issue directions in certain cases.— A Joint Commissioner may, on his own motion or on a reference being made to him by the Assessing Officer or on the application of an assessee, call for and examine the record of any proceeding in which an assessment is pending and, if he considers that, having regard to the, nature of the case or the amount involved or for any other reason, it is n ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... — (a) an order passed on or 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 Deputy Commissioner or the Income-tax Officer on the basis of the directions issued by the Joint Commissioner under section 144A." 8 Learned counsel for the respondent Shri R. L. Jain, submits that the learned Commissioner of Income-tax was within his jurisdiction to examine the validity of the direction issued by the Deputy Commissioner of Income-tax while examining the order of the Assessing Officer. Reliance was placed on sub-clause (a) (i) of the Explanation to sub-section (1) of section 263 of the Act. Reliance was placed on a decision of the Madras Hig ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Income-tax Officer" in section 263 to exclude orders passed by the Income-tax Officer on the directions of superior authority either under section 144A or 144B. Apart from this, Explanation (a)(i) of section 263(1) is self explanatory and leaves no room for confusion as it is mentioned in the Explanation that the order passed by Assessing Officer shall include the directions issued under section 144A the Act. 9 In view of this, the answer to the questions framed is that in revision the Commissioner of Income-tax is competent to examine the legality and the validity of the directions issued by the Deputy Commissioner under section 144A of the Act on the basis of which the order of assessment has been passed by the Assessing Officer ..... X X X X Extracts X X X X X X X X Extracts X X X X
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