2007 (5) TMI 186

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..... ated at the time of admission "Whether the Income-tax Appellate Tribunal erred in law in setting aside the order annexure P/3 passed by the, Commissioner of Income-tax under section 263 by its order annexure P12 on the ground that the order of the Assessing Officer was not erroneous or prejudicial to the interests of the Revenue ?" 2 For the sake of convenience, the facts, which lie in a narrow compass, have been taken from the above appeal which pertains to the assessment year 1999-2000. The assesses is in the business of purchase of agricultural land and sale of developed residential plot. For the assessment year 1999-2000 the assesses filed the return showing Rs. 9,982 as the total income. After scrutiny, notice under section 143(2) re .....

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..... judicial to interests of the Revenue therefore, Commissioner of Income-tax was justified in invoking, the revisional diction under section 263 of the Act. Per contra learned senior counsel appearing  for the assesses supported the Income-tax Appellate Tribunal's Order and submitted that no interference is wananted with it and the appeal being devoid of substance deserves dismissal. In support of his contention learned senior counsel for the assesses placed reliance on the decisions of the Supreme Court reported in Malabar Industrial Co. Ltd. v. CIT [2000] 243 ITR 83,  Ratlam Coal Ash Co. [1988] 171 ITR 141 (MP),Kesharimal Bapulal (HUF) V. CIT [2001] 252 764 (MP) and CIT v. Gabriel  India Ltd. [1993] 203 ITR 108 (Born). 4 A .....

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..... nquiry and as a result a substantial amount of taxable income was not brought to tax. In such a case the assessment order would be erroneous and prejudicial to the interests of the Revenue because law enjoins upon  the Assessing Officer to make the assessment order bringing all taxable income to tax. The enquiry held in a perfunctory manner could not be said be a proper enquiry before passing the assessment order. This cannot be a ground to shut out the jurisdiction of the Commissioner of Income-tax that an adequate enquiry was conducted by the Assessing Officer. We may clarify that the order of the Commissioner of Income-tax is in two parts. Part one consists of reasons for issuing the show-cause notice, and the later part deals with .....

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