TMI Blog1988 (8) TMI 80X X X X Extracts X X X X X X X X Extracts X X X X ..... 3 of the Income-tax Act, 1961, an assessment order passed by the Income-tax Officer in accordance with the directions issued to him by the Inspecting Assistant Commissioner of Income-tax under section 144B of the Income-tax Act, 1961 The material facts giving rise to this reference, briefly, are as follows While framing the assessment of the assessee for the assessment year 1978-79 for which the assessee had filed a return declaring an income of Rs. 53,226, the Income-tax Officer proposed to make additions exceeding Rs. 1,00,000 to the income declared by the assessee. One of the items of addition proposed by the Income-tax Officer related to an amount of Rs. 1,50,000 pertaining to high denomination notes declared by the assessee. The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner. Aggrieved by the order passed by the Tribunal, the Revenue sought reference and it is at the instance of the Revenue that the aforesaid question of law has been referred to this court for its opinion. Shri Mukati, learned counsel for the Revenue, contended that an order passed by the Income-tax Officer in compliance with the directions of the Inspecting Assistant Commissioner continued to be an order passed by the Income-tax Officer and, as such, the Commissioner had power to revise that order under section 263 of the Act, provided the Commissioner was satisfied that the order was erroneous and was prejudicial to the interests of the Revenue. It was, therefore, contended that the Tribunal erred in holding that the order pas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... read as follows: "263. Revision of orders prejudicial to Revenue.-(1) The Commissioner may call for and examine the record of any proceeding under this Act, and if he considers that any order passed therein by the Income-tax Officer is erroneous in so far as it is prejudicial to the interests of the Revenue, he may, after giving the assessee an opportunity of being heard and after making or causing to be made such inquiry as he deems necessary, pass such order thereon as the circumstances of the case justify, including an order enhancing or modifying the assessment, or cancelling the assessment and directing a fresh assessment." From a perusal of the aforesaid provision, it is clear that the Commissioner has jurisdiction under section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of any statute. Such Acts are usually held to be retrospective. The usual reason for passing a declaratory Act is to set aside what Parliament deems to have been a judicial error, whether in the statement of the common law or in the interpretation of statutes. Usually, if not invariably, such an Act contains a preamble, and also the word 'declared' as well as the word enacted. " In Channan Singh v. Jai Kaur, AIR 1970 SC 349, the Supreme Court has observed that it is well settled that if a statute is curative or merely declares the previous law, retroactive operation would be more rightly ascribed to it. Learned counsel for the assessee referred to the decision in Harding v. Commissioners of Stamps for Queensland [1898] AC 769 (PC) and c ..... X X X X Extracts X X X X X X X X Extracts X X X X
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