TMI Blog1985 (2) TMI 23X X X X Extracts X X X X X X X X Extracts X X X X ..... d restoring the matter to the Income-tax Officer when the appeal is against the order under section 263 of the Income-tax Act, 1961 ? (iii) Whether it is open to the Tribunal to restore the matter to the income-tax Officer after having held that the Commissioner had failed to positively establish that the expenditure on commission will not qualify for weighted deduction ? (iv) Whether the Tribunal was right in law in not cancelling the disallowance of weighted deduction on commission payments when their finding is that the Commissioner had failed to discharge the mandatory duties enshrined in section 263 of the Income-tax Act, 1961, by making judicious enquiry before concluding that the relevant portion of the order of the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ----------------------- 6,48,185.16 ----------------------- The Income-tax Officer in the assessment order dated March 20, 1981, disallowed items relating to postage and telegrams, telephone charges and bank charges totalling to Rs. 68,222 with the result that he added back sum of Rs. 22,748 being one-third thereof and completed the assessment. On a perusal of the said assessment order, the Commissioner felt that the assessment in so far as it gave relief in respect of expenditure incurred on air freight, insurance, carriage of goods and also on commission paid in India on export sales which are not eligible for allowance, issued a showcause notice on March 1, 1983, under section 263 of the Income-tax Act, proposing to revise the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ible for weighted deduction under section 35B(viii) as amended by section 8 of the Finance Act, 1970. Both the grounds of attack had been rejected by the Tribunal. The Tribunal held that the Commissioner was justified in invoking his original jurisdiction under section 263 of the Income-tax Act as the grant of relief by the Income-tax Officer in relation to air freight, insurance and carriage of goods without verifying the facts is prejudicial to the Revenue and that is sufficient to sustain the jurisdiction of the Commissioner under section 263 of the Income-tax Act. The Tribunal, however, did not agree with the Commissioner that the assessee can be denied relief in respect of the said expenditure straightaway without further enquiry with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g to the Commissioner, is not justified. Once that finding is reached by the Commissioner, the revisional jurisdiction under section 263 of the Income-tax Act could be validly invoked by the Commissioner as part of the order passed by the Income-tax Officer is in his opinion prejudicial to the assessee. In this case, without any proper verification, the Income-tax Officer has given relief, and that such an order being an order prejudicial to the Revenue, it could properly form the subject-matter of the revision under section 263 of the Income-tax Act by the Commissioner. The mere fact that subsequently the Tribunal modifies the order of the Commissioner as one remitting the matter to the Income-tax Officer will not mean that the Commissione ..... X X X X Extracts X X X X X X X X Extracts X X X X
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