TMI Blog2014 (10) TMI 945X X X X Extracts X X X X X X X X Extracts X X X X ..... pplicable even in respect of Intimation issued under Section 143(1) of the Act post 1 June 1999. In an appropriate case, we would consider the submission on behalf of the revenue. Accordingly, the impugned order dated 20 April 2006 is set aside and the application is restored to the Commissioner of Income Tax with a direction to pass an appropriate order in accordance with law. Commissioner of Income Tax directed to dispose of the petitioner's application under section 264 of the Act as expeditiously as possible and preferably within 8-weeks from today. - WRIT PETITION NO.2095 OF 2006 - - - Dated:- 1-10-2014 - M.S.SANKLECHA, N.M. JAMDAR, JJ. Mr. J.D.Mistri, Senior Advocate alongwith Mr. Atul K. Jasani and Mr.P. C. Tripathi for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... loss from its income while filing its return of income for AY 2003-04.In the above circumstances, on 20 February, 2006 the petitioner filed a revision application under Section 264 of the Act to the Commissioner of Income Tax. The above revision application was accompanied along with an application for condonation of delay. 4) The delay in filing the revision application was condoned by the Commissioner of Income Tax. The revision application under Section 264 of the Act itself was taken up for consideration. At the hearing, the Commissioner of Income Tax indicated his view that an Intimation was not amenable to revisional jurisdiction under Section 264 of the Act, post the deletion of the Explanation to Section 143(1) with effect from 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The impugned order placed reliance upon the decision of the Karnataka High Court in the matter of Avasaraja Automation Ltd. Vs. Dy. Commissioner of Income Tax and another 269 ITR 163 to conclude that post the deletion of the Explanation to Section 143(3) of the Act in June 1999 an Intimation ceases to be an order for purposes of Section 264 of the Act. Thus, the impugned order dated 20 April 2006 dismissed the revision application under Section 264 of the Act. 6) It is important to note that Section 263 and 264 of the Act both deal with revision of orders passed by an Assessing Officer. Section 263 of the Act empowers the Commissioner to revise the order passed by officers subordinate to him, if the same are erroneous and prejudicial to ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e power under Section 264 because of amendment to Section 143(1) by Finance Act, 1999. Powers of the Assessing Officer to make prima facie adjustments under Section 143(1), done away with by Finance Act, 1999 (with effect from 1st June 1999) does not in any way affect the right of the Commissioner under Section 264 of the Act to grant relief to the assessee if available to the assessee as per the decision of the Apex Court. Exercise of powers under Section 264 is not subject to the power of the Assessing officer to make adjustments under Section 143(1) of the Income Tax Act. Therefore, relief can be granted to the assessee under Section 264 even if the power of adjustment under Section 143(1) is taken away from the Assessing Officer. . T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... if there were any reservation with regard to the above decisions, it was always open to the Revenue to challenge the decision of the Commissioner of Income Tax before a higher forum. However, it is not permissible to the authority functioning in the State of Maharashtra to ignore a binding decision of this Court as this would lead to undue harassment to the assessee and chaos in the administration of justice. 10) As regards the decision of the Karnataka High Court in Avasaraja Automation Ltd. (supra) is concerned, it is not of the jurisdictional high Court . Therefore, the Commissioner was obliged to follow the decision of this Court on the issue. In any event, it seems that the decision therein proceeded upon a concession made by the C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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