Orissa High Court
Umashankar Rice Mill vs Commissioner Of Income-Tax on 20 July, 1990
Equivalent citations: [1991]187ITR638(ORISSA)
JUDGMENT S.C. Mohapatra, J.
1. This is an application under Section 256(2) of the Income-tax. Act, 1961, against the order of refusal by the Income-tax Appellate Tribunal refusing to state a case under Section 256(1) of the Act.
2. The Commissioner of Income-tax exercised power under section. 263 of the Act. The petitioner's grievance is that power under Section 263 ought not to have been exercised when there was an exhaustive enquiry by the income-tax Officer before making assessment and, in any case, the Income-tax Officer had power under Section 147 to reopen the assessment for reasons as indicated in that section.
3. Mr. A.K. Ray submitted that an interpretation of Section 263 is involved in this case for which a statement ought to be called for. Learned Advocate-General who is also,standing counsel for the Department submitted that where the Legislature has not put any restriction to the power under Section 263 of the Income-tax Act, on the language of that section which is clear, no question of law arises out of the order especially when the Tribunal, after careful consideration of the entire material, held that the Commissioner was justified in exercising the power.
4. We are inclined to accept what Mr. Sovesh Ray has submitted. In the circumstances, the power under Section 263 of the, Income-tax Act being, available to be exercised by the Commissioner since on the basis of some materials available on record, the Commissioner felt that then should be a further enquiry.
5. We are not inclined to accept this petition which is, accordingly, dismissed. No costs.
J.M. Mahapatra, J.
6. I agree.