TMI Blog2000 (2) TMI 75X X X X Extracts X X X X X X X X Extracts X X X X ..... nt proceedings for the assessment year 1975-76, it claimed exemption under section 11 of the (Act. The Income-tax Officer accepted the claim of the assessee and in reaching the above conclusion, he departed from his earlier view arrived at by him for the earlier assessment year 1974-75 wherein he has held that the entire business income was liable to be taxed. The reason for his departure from his finding rendered for the earlier assessment year was that he was of the view that the ratio of the decision of the Supreme Court in the case of CIT v. Dharmodayam Co. [1977] 109 ITR 527 would apply to the facts of the case and completed the assessment granting the exemption as claimed by the assessee. It is relevant to mention here that the Income ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder the Act. Hence, the Commissioner set aside the order of assessment with a direction to redo the same in accordance with law. The assessee appealed to the Income-tax Appellate Tribunal. The Appellate Tribunal found that the Income-tax Officer had considered all relevant materials on record and held that the case of the assessee would fall within the ratio of the decision of the Supreme Court in the case of CIT v. Dharmodayam Co. [1977] 109 ITR 527 and the assessee would be entitled to exemption. The Tribunal also held that the fact that the Income-tax Officer had departed from his earlier year's finding showed that he had applied his mind to the grant of exemption at the time of completion of assessment and that he did not act mechani ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the earlier year shows that he had not acted in a mechanical manner and has applied his mind to the question of grant of exemption and considered the matter before granting exemption under the Act. The Commissioner of Income-tax set aside the order of the Income-tax Officer on the score that the Income-tax Officer was not aware of the fact that the business of distributorship in fertilizer was donated in favour of the assessee and the Income-tax Officer was not right in not considering the effect of the donation of the distributorship business in favour of the assessee. However, the Commissioner of Income-tax has not examined the question further that, even assuming that such a material was placed before the Income-tax Officer, the posit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... re of the view that where the material relied upon by the Commissioner which, according to him, was omitted to be noticed by the Income-tax Officer would not have altered or varied the final conclusion arrived at by the Income-tax Officer, the Commissioner would lack the jurisdiction to revise the order of assessment and the decision of this court in K A. Ramaswamy Chettiar's case [1996] 220 ITR 657 would have no application to the facts of the case. We are also of the opinion that it is futile on the part of the Commissioner to set aside the order of the Income-tax Officer by directing him to consider the fact of donation of the distributorship business in favour of the assessee-trust when after considering the said fact, the conclusion ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome-tax Officer to hold another investigation when the order of the Assessing Officer was not found to be erroneous. The Commissioner of Income-tax in the instant case, in our opinion, has merely set aside the order of the Income-tax Officer directing the officer to hold further investigation without recording any finding that the order passed by the Income-tax Officer was in any way erroneous or prejudicial to the interests of the Revenue, We hold that the Tribunal was quite justified in holding that the order did not call for any interference in the, revision done by the Commissioner of Income-tax. Accordingly, we answer the question of law referred to us in the affirmative and against the, Revenue. The assessee will be entitled to cos ..... X X X X Extracts X X X X X X X X Extracts X X X X
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