Commissioner of Income-tax Vs. East Coast Marine Products (P.) Ltd. and anr. - Court Judgment |
| SooperKanoon Citation | sooperkanoon.com/424853 |
| Subject | Direct Taxation |
| Court | Andhra Pradesh High Court |
| Decided On | Feb-01-1989 |
| Case Number | Cases Referred Nos. 165 of 1984 and 177 of 1985 |
| Judge | B.P. Jeevan Reddy and ;V. Neeladri Rao, JJ. |
| Reported in | (1990)88CTR(AP)156; [1990]181ITR314(AP) |
| Acts | Income Tax Act, 1961, - Sections 125, 125A(1), 144A, 144B, 144B(4), 263 and 263(1) |
| Appellant | Commissioner of Income-tax |
| Respondent | East Coast Marine Products (P.) Ltd. and anr. |
| Appellant Advocate | M. Suryanarayana Murthy, Adv. |
| Respondent Advocate | Y. Ratnakar, Adv. |
Excerpt:
.....of income tax act, 1961 - question of law referred to high court at instance of revenue - whether commissioner of income tax precluded from exercising his power of revision even with respect of issues which are not subject matter of appeal - answer given with help of view taken in precedents - precedents decided with a view to minimize proceedings under section 263 initiated by those who use right of appeal as a device - answer of reference given in favour of revenue - commissioner of income tax does not have power to revoke jurisdiction under section 263 even in respect of non appealable orders. head note: income tax revision under s. 263--merger with appellate - motor vehicles act (59 of 1988)section 149 (2): [v. gopala gowda & jawad rahim, jj] insurers entitlement to defend the..........of revisional jurisdiction by the commissioner under s. 263. -- cit v. k.l. rajput (1987) 164 itr 197 (mp) (fb) concurred with.-- note : legislature has since stepped in with a view to remove any controversy. it has introduced cl. (c) in the explanation to s. 263. this explanation introduced by the taxation laws (amendment), act, 1984, and amended by the direct tax laws (amendment) act, 1987, though not applicable to the assessmentorder concerned herein, manifests the legislative intent. income tax act 1961 s.263
Judgment:ORDER
--In respect of matters not covered by appeal before Commissioner (A)
Held:
The doctrine of merger applies to income tax proceedings but the extent of its applicability depends onthe scope and the subject matter of the appeal and the decision rendered by the appellate authority. Matters whichare not covered by the appellate order are left untouched and to that extent, the ITO's assessment order survives permitting exercise of revisional jurisdiction by the Commissioner under s. 263. -- CIT v. K.L. Rajput (1987) 164 ITR 197 (MP) (FB) concurred with.-- Note : Legislature has since stepped in with a view to remove any controversy. It has introduced cl. (c) in the Explanation to s. 263. This Explanation introduced by the Taxation Laws (Amendment), Act, 1984, and amended by the Direct Tax Laws (Amendment) Act, 1987, though not applicable to the assessmentorder concerned herein, manifests the legislative intent.
Income Tax Act 1961 s.263