TMI Blog1988 (3) TMI 57X X X X Extracts X X X X X X X X Extracts X X X X ..... iction under section 263(1) of the Income-tax Act, 1961 ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal has rightly held that the impugned order of the Commissioner of Income-tax is based upon mere surmises and conjectures and is, therefore, not valid ? 3. Whether, in view of the decision of the Income-tax Appellate Tribunal, Patna, in the case of Smt. Rambha Devi v. ITO (I.T.A. Nos. 1713 to 1715 of 1974-75), the Tribunal has rightly held that the Commissioner of Income-tax, acting under section 263(1) of the Income-tax Act, 1961, could not legally set aside an order of assessment made under section 143(1) in pursuance of the scheme 'to help the new taxpayers in the small income groups' evolved by the Gover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment. The Tribunal, therefore, retained the assessment of the Income-tax Officer and cancelled that of the Commissioner. The Revenue, being aggrieved by the order of the Tribunal, has moved this court and referred the questions mentioned above for our opinion. Questions similar to those were referred to us earlier, which were the subject-matter of reference before this court in CIT v. Pushpa Devi [1987] 164 ITR 639. In that case, we held that the Income-tax Officer had not carried out the necessary enquiry enjoined by section 143(1). Since that was our opinion in regard to the power of the Income-tax Officer, we held that the Commissioner was within his powers in acting in terms of section 263(1) of the Income-tax Act. The positi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion No. 3, in these references, is ancillary to questions Nos. 1 and 2. Since questions Nos. 1 and 2 have been answered in favour of the Revenue, question No. 3 also must be answered in favour of the Revenue. So far as question No. 4 goes, there can be no escape from the position that the Tribunal was not right in cancelling the consolidated order passed by the Commissioner of Income-tax under section 263(1) of the Income-tax Act. In that view of the matter, all the four questions referred to this court must be answered in favour of the Revenue and against the assessee. However, there will, be no order as to costs. Let a copy of this order be transmitted to the Assistant Registrar, Income-tax Appellate Tribunal, Patna, in terms of secti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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