9911796707
TMI Blog2002 (5) TMI 14X X X X Extracts X X X X X X X X Extracts X X X X ..... is the sole distributor of MICO products for Jodhpur Division. The Income-tax Officer, C-Ward, Jodhpur, made an ex parte assessment under section 144 on March 27, 1985. It was reopened under section 146 by order dated March 30, 1985. The assessee filed the returns of income for the periods April 1, 1980, to December 10, 1980, and from December 11, 1980, to March 31, 1981. The assessing authority by order dated March 27, 1985, computed the total income of the assessee. The assessee preferred an appeal to the Commissioner of Income-tax (Appeals), which was decided by order dated August 8, 1985. The Commissioner of Income-tax (Appeals) discussed the disallowance on seven different heads. Subsequent thereto, the Commissioner of Income-tax, Jod ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ce in judicial pronouncement by the different High Courts, a view favouring the assessee is required to be taken. Accordingly, the Tribunal cancelled the order of assessment made by the Income-tax Officer in pursuance of the order of the Commissioner of Income-tax by order dated November 4, 1988. However, the Tribunal on the application filed by the Revenue expressed that as there was no decision of the jurisdictional court, it was a fit case to make a reference for the opinion on the question formulated, which has been referred to above. It is contended by Mr. Sandeep Bhandawat, learned counsel appearing for the Revenue, that the controversy involved is now concluded by the decision of the apex court in CIT v. Shri Arbuda Mills Ltd. [1998 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... However, the controversy has been now resolved by introducing the Explanation clause (c) to section 263(1) of the Income-tax Act by way of amendment. The Explanation was substituted by the Finance Act, 1988, with retrospective effect from June 1, 1988, in clause (c) of the Explanation was amended by the Finance Act, 1989. The amendment is retrospective in nature (with effect from June 1, 1988), as is clear from the reading of the said Explanation. We may refer to the amendment made in section 263(1) of the Income-tax Act, which reads as follows: "Explanation.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section,-... (c) Where any order referred to in this sub-section and passed by the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X
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