TMI Blog1996 (2) TMI 59X X X X Extracts X X X X X X X X Extracts X X X X ..... appellate authority had no power of remand and, therefore, the procedural illegality could not be corrected by recourse to remanding the case to the Income-tax Officer ? (ii) Whether, on the facts and in the circumstances of the case, the Tribunal was justified in holding that the period of limitation prescribed under section 275 of the Act could not be extended by an order of remand since in the Explanation three specific conditions have been given under which the period of limitation could be extended ? " The material facts giving rise to this reference, briefly, are as follows : (I) The assessee is a registered firm. The year of assessment involved is 1980-81. The Income-tax Officer levied penalty of Rs. 24,100 on the assessee und ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tribunal further held that even if the case was remitted to the Income-tax Officer, he could do nothing since the period of limitation prescribed under section 275 had already expired and in view of section 275 of the Act, particularly the Explanation to it, the time taken in the first and second appeals could not be excluded. Now, from the facts found by the Tribunal, it is clear that while the Tribunal agreed with the proposition of law advanced on behalf of the Department that in proceedings lawfully initiated if there is any procedural illegality, it can be permitted to be corrected at the point at which the illegality was discovered, however, the Tribunal could not direct remand of the case to the Income-tax Officer on the followin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... adesh High Court in CIT v. Sardarilal Bhasin [1989] 179 ITR 307, which was not brought to the notice of the Tribunal. A copy of the order of the Tribunal is marked annexure--' C ' forming part of the statement of the case." It is thus clear that at a later stage the Tribunal itself realised the infirmity of the order passed by it and referred the questions on application of the Commissioner of Income-tax, Bhopal. Shri Vyas, learned counsel for the applicant, thus submitted that in view of the aforesaid averment and legal position the questions deserve to be answered in favour of the applicant-Department. Shri Nazir Singh, learned counsel for the non-applicant, was unable to urge anything substantially to take a different view from what is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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