August 2010
Revision : S. 263 of Income-tax Act, 1961 : A.Y. 2004-05 : Commissioner setting aside assessment order and directing AO to pass fresh order following procedure u/s. 50C(2)(b) : Not proper : Commissioner has no power to direct AO to complete asessment in a
By K. B. Bhujle | Advocate
New Page 1
Reported :
45 Revision : S. 263 of Income-tax Act, 1961 : A.Y. 2004-05 :
Commissioner setting aside assessment order and directing AO to pass fresh order
following procedure u/s. 50C(2)(b) : Not proper : Commissioner has no power to
direct AO to complete asessment in a particular manner.
[CIT v. Smt. Tasneem Z. Madraswala; 324 ITR 67 (Mad.)]
For the A.Y. 2004-05, the assessment was completed u/s.143(3)
of the Income-tax Act, 1961 determining the total income at Rs.8,02,440.
Subsequently, the Commissioner set aside the assessment order exercising the
powers u/s.263 of the Act and also directed the Assessing Officer to pass a
fresh assessment order following the procedure contemplated u/s.50C(2)(b) of the
Act. The Tribunal deleted the direction given by the Commissioner for invoking
the procedure contemplated u/s.50C(2)(b) of the Act to value the capital asset
in a particular manner.
The Madras High Court dismissed the appeal filed by the
Revenue and held as under :
“While cancelling the order of assessment, there was no power
vested with the Commissioner to direct the Assessing Officer to complete the
assessment in a particular manner. Therefore, the Tribunal had correctly set
aside that portion of the order passed by the Commissioner, directing the
Assessing Officer to complete the assessment by recourse to the provisions
contained u/s.50C(2)(b) of the Act.”
