TMI Blog1990 (11) TMI 126X X X X Extracts X X X X X X X X Extracts X X X X ..... er section 256(2) of the Income-tax Act, 1961 : "Whether, on the facts and in the circumstances of the case, the Appellate Tribunal's opinion that the Additional Commissioner of Incometax did not apply his mind before initiating proceedings under section 263(1) of the Income-tax Act, 1961, and he abdicated his function in favour of the Income-tax Officer is legally correct ?" The assessee is a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 964-65 because it was barred by the limitation prescribed in section 186. So far as 1968-69 is concerned, the Income-tax Officer approached the Additional Commissioner of Income-tax for cancellation of registration. The order of the Commissioner says, that, when the Income-tax Officer Approaching him therefor, he issued a show-cause notice under section 263. It appears that the assessee did not ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cted upon his request and sent the matter back to him. Thereupon, the present reference was obtained. Mr. Markanday Katju, learned counsel for the Revenue, assailed the correctness of the approach and the observation made by the Tribunal. He submitted that there was nothing wrong in the Income-tax Officer approaching the (Commissioner with certain information. He further submitted that there was ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... to the material placed before him and satisfy himself that it is a case where he ought to exercise his revisional power. Then he may issue a show cause notice and, after affording an opportunity to the affected parties, pass final orders. After hearing the counsel for both the parties, we are unable to see as to why the Income-tax Officer approached the Commissioner in this case at all requestin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... On the Income-tax Officer approaching him, the Commissioner straightaway invoked the revisional power and issued a show cause notice. On this ground, we agree with the Tribunal that the Commissioner must be said to have initiated proceedings under section 263 without properly considering all the facts and circumstances of this case. On this ground, which is slightly different from the one given b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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