Gujarat High Court
Commissioner Of Income Tax vs Shreyas Land Development Corpn. on 9 July, 2001
Equivalent citations: (2003)184CTR(GUJ)607
Author: A.R. Dave
Bench: A.R. Dave
ORDERAssessment order passed under section 143(3) read with section 144B Catch Note: The assessment order passed by the assessing officer under section 143(3) read with section 144B could be revised by the Commissioner under section 263. Ratio: The assessment order passed by the assessing officer under section 143(3) read with section 144B could be revised by the Commissioner under section 263. Case Law Analysis: CIT v. East Coast Marine Products (P) Ltd. & Anr. (1990) 181 ITR 314 (AP) concurred with. Application: Section 144B omitted by the Direct Tax Laws (Amendment) Act, 1987, with effect from 1-4-1989 Decision: In favour of revenue. Income Tax Act 1961 s.263 JUDGMENT A.R. Dave, J.
1. At the instance of the Revenue, the following question has been referred to this Court for its opinion under the provisions of Section 256(1) of the IT Act, 1961 (hereinafter referred to as "the Act"), by the Tribunal, Ahmedabad Bench 'C' :
"Whether, on the facts and in the circumstances of the case and in law the Tribunal was right in coming to the conclusion that since the assessment order was passed by the ITO under Section 143(3) r/w Section 144B of the IT Act the order of the CIT under Section 263 was invalid ?"
2. Learned advocate Shri Bharat Naik has appeared for the applicant whereas nobody has appeared for the respondent-assessee, though the respondent has been served.
3. Learned advocate Shri Bharat Naik has submitted that the Tribunal, while passing the impugned order had referred to and relied upon the decision rendered by the Special Bench of the Tribunal in the case of CIT v. East Coast Marine Products (P) Ltd. and Anr. After taking into account the decision rendered by the Special Bench in the said case, wherein a similar legal question has been raised, the Tribunal came to the conclusion that the CIT was not empowered to take into revision an order passed by the AO under Section 143(3) r/w Section 144B of the Act.
4. During the pendency of this reference, the decision which was rendered by the Special Bench was under scrutiny of Andhra Pradesh High Court. The Andhra Pradesh High Court has reversed the order passed by the Special Bench in case of CIT v. East Coast Marine Products (P) Ltd. and Anr. (1990) 181 ITR 314 (AP).
5. We have gone through the facts of the case and law laid down by the Andhra Pradesh High Court in case of CIT v. East Coast Marine Products (P) Ltd. and Anr., (supra). We are in respectful agreement with the judgment delivered in the said case and accordingly we also answer the question referred to us in the negative i.e., in favour of the Revenue and against the assessee.
The reference stands disposed of with no order as to costs.