2007 (12) TMI 503

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..... MENT This appeal is by the revenue challenging the order passed by the Income Tax Appellate Tribunal, Panaji Bench in ITA No. 724/BANG/1995 raising the following substantial question of law: 1 Whether the Tribunal was justified in holding that the Commissioner of Income Tax cannot exercise powers under Section 263 of the I. T. Act, to direct the Assessing officer to reconsider the penalty p .....

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..... s under Sec.263 of the I. T. Act re-opened the case and after hearing the assessee held that the Assessing Officer was not justified in dropping the proceedings by passing an one sentence order the directed the Assessing Officer to the matter. According to the Commissioner, when a detailed reply was filed by the assessee, it was for the Assessing Officer to consider the reply in detail and it he w .....

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..... and it he considers that any order passed by the Assessing Officer is erroneous and prejudicial to the interest of the revenue, he may after giving an opportunity to the assessee and after making such equity as it deems necessary pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment or cancelling the assessment and directing a fr .....

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..... n order of one sentence without application of mind. Therefore, the Commissioner felt the order of the Assessing Officer requires to be re-considered by the very same Assessing Officer as there was no application of mind. In the circumstances, he requests this Court to answer the question of law raised in this appeal in favour of the revenue. 7. Per contra, the learned counsel appearing for the .....

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..... e revenue. 9. In the instant case, as rightly pointed out by Mr. Sheshachala, proceedings were initiated by the Assessing Officer, the assessee had also sent a detail reply and though the Assessing Officer had accepted the cause shown by the assessee, did not pass a speaking order or a considered order. 10. In the circumstances, we have to answer the question of law in favour of the revenue .....

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