TMI Blog2002 (12) TMI 37X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that the assessee is entitled to revenue deduction amounting to Rs. 14,27,799 on account of revaluation of securities, when such securities are to be classified in 'investment account' in the light of the Supreme Court's decision in Vijaya Bank Ltd. v. Addl. CIT [1991] 187 ITR 541?" The assessment year, with which we are concerned is 1982-83. The assessee filed its return of income for the said assessment year admitting an income of Rs. 21,12,483. The assessee enclosed along with the return a statement and claimed a deduction of a sum of Rs. 14,27,799 towards depreciation on the depreciated value of in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... had all along been accepted by the Department and therefore that the assessee was entitled to the revenue deduction in respect of the deficiency and allowed the appeal preferred by the assessee. At the instance of the Revenue, the questions of law earlier referred to have been referred to us. Heard Mrs. Pushya Sitharaman, learned senior Central Government standing counsel, and Mr. P. P. S. Janardhana Raja, learned counsel appearing for the assessee. We find that the Commissioner of Income-tax had interfered with the order of the Income-tax Officer invoking his powers under section 263 of the Act when he found that during the previous year relevant to the assessment year in question, the assessee has changed the method of valuation in v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent as the order of the Commissioner shows that the Commissioner was of the opinion that the assessee had changed the method of valuation of its investments. Since the Tribunal has not considered the factual issue on the mode adopted DY the assessee to value the securities and also not decided the question whether the Commissioner was correct in his observation that the assessee had valued the securities neither at the market value nor at the book value, we are of the opinion that the Tribunal should consider the question afresh regarding the allowability of the deduction as the allowability of the entire amount claimed by the assessee would depend upon the correctness of the method of valuation adopted by the assessee in valuing its invest ..... X X X X Extracts X X X X X X X X Extracts X X X X
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