Madhya Pradesh High Court
Commissioner Of Income-Tax vs Shelly Products (No. 1) on 21 April, 1989
Equivalent citations: [1989]179ITR461(MP)
JUDGMENT
G.G. Sohani, Actg. C.J.
1. This is-an application under Section 256(2) of the Income-tax Act, 1961 (hereinafter referred to as "the Act").
2. The material facts giving rise to this application, briefly are as follows : The assessee is assessed in the status of a registered firm and the assessment year in question is 1976-77. The case of the assessee was earlier within the jurisdiction of the Income-tax Officer, B-Ward, Bhopal, who had forwarded the draft of the proposed order of assessment together with the objections of the assessee to the Inspecting Assistant Commissioner, Range-I, Bhopal, as required under Section 144B of the Act. During the pendency of this reference, the case of the assessee was transferred by the Commissioner of Income-tax under Section 127 of the Act to the Income-tax Officer, Special Investigation Circle-I, Indore. The Inspecting Assistant Commissioner, Bhopal, forwarded the draft assessment order along with the objections of the assessee to the Inspecting Assistant Commissioner (Assessment), Indore, for issuing necessary directions under Section 144B of the Act. The Inspecting Assistant Commissioner, Indore, accordingly, issued directions and on receipt of these directions, the Income-tax Officer, Special Investigation Circle-I, Indore, passed the assessment order. The appeal preferred by the assessee was rejected by the Commissioner of Income-tax (Appeals). On further appeal before the Tribunal, the Tribunal held that the Inspecting Assistant Commissioner, Indore, had no jurisdiction to issue directions under Section 144B of the Act. In this view of the matter, the Tribunal" quashed the order of assessment passed by the Income-tax Officer, Special Investigation Circle-I, Indore. Aggrieved by the order passed by the Tribunal, the Revenue sought reference, but as the application made in that behalf was rejected by the Tribunal, the Revenue has filed this application.
3. Having heard learned counsel for the parties, we have come to the conclusion that the following question of law does arise out of the order passed by the Tribunal :
"Whether, on the facts and in the circumstances of the case, the Tribunal was justified in quashing the order of assessment passed by the Income-tax Officer, Special Investigation Circle-I, Indore, on August 23, 1980, as void ab initio on the ground that the Inspecting Assistant Commissioner (Assessment), Indore, had no jurisdiction to give directions to the Income-tax Officer, Special Investigation Circle-I, Indore, under Section 144B of the Act ?"
4. The application is, accordingly, allowed. The Tribunal is directed to state the case and to refer the aforesaid question of law to this court for its opinion. In the circumstances of the case, parties shall bear their own costs of this application.