TMI Blog1988 (3) TMI 43X X X X Extracts X X X X X X X X Extracts X X X X ..... t the Commissioner of Incometax (AP) acted with jurisdiction in invoking section 263 of the Income-tax Act and in setting aside the order of the Income-tax Officer in which it was held that the assessee is a company in which the public are substantially interested ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal is justified in law in holding that the order passed by the Income-tax Officer under section 143(1) dated November 18, 1977, in which the status of the assessee was determined as a company in which the public are substantially interested became non est by the later order passed under section 143(3) dated January 30, 1979 ? " In R. C. No. 174 of 1985 which relates to the assessment year 1977-78, one ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ording to the Commissioner, the status of the assessee had not been examined. It would appear that the assessee is a public company. Whether that public company is one in which public are substantially interested or not is a relevant issue for the purpose of assessment. The Commissioner of Income-tax seems to have felt that there are grounds to think that the assessee is a public company in which public are not substantially interested. In that view, jurisdiction was exercised by the Commissioner under section 263 of the Act to revise the assessments made by the Income-tax Officer. Apart from the objection on merits, the assessee took the preliminary plea that it is not open to the Commissioner to exercise jurisdiction under section 263 ina ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng under section 144B of the Act should be given effect by the Income-tax Officer while making an assessment. Learned counsel, therefore, urges that although ostensibly the order may appear to have been passed by the Income-tax Officer, in reality, it is an order of the Inspecting Assistant Commissioner of Income-tax since it accords with the directions of the Inspecting Assistant Commissioner of Income-tax. And then, contends the counsel, the provisions of section 263 of the Act do, not confer power on a Commissioner to revise the order or directions given by an Inspecting Assistant Commissioner. Learned counsel, therefore, contends that there is total want of jurisdiction as far as the Commissioner is concerned and the orders setting asid ..... X X X X Extracts X X X X X X X X Extracts X X X X
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