Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Order of Where revenue questioned correctness of Tribunal's view in allowing claim of assessee for certain expenditure on basis of confidential note of Department for subsequent year, there was no unfairness or illegality in order of Tribunal as revenue should have respected its own file note. [A.Y. 1996-97]. The assessee had claimed an expenditure of Rs. 14.60 lakhs as lease rental payable to various finance companies. The assessing authority noted that the assessee had inflated the claim on the value of cost of acquisition on steel rolls from Rs. 15,000 to Rs. 60,000. Consequently, in respect of the assessment year 1995-96, he restricted claim its to Rs. 15,000 as cost of steel rolls. On appeal, the Commissioner (Appeals) partly allowed its appeal but rejected its cost of acquisition of each steel roll. On appeal before the Tribunal, it was noted that the cost of steel rolls had not been referred to for any valuation. In the course of argument, the assessee referred to the assessment records in its own case for the immediate succeeding year, 1997-98. The document relied on by the assessee related to a note pertaining to the same assessment year; it was noted therein that the rate for each roll was different depending upon its specification. On the basis of the said note, on which heavy reliance was placed by the assessee, the Tribunal noted that the same carried the signature of the Deputy Commissioner. Consequently, it held that the revenue had no case and allowed the appeal of the assessee. On appeal the revenue questioned the correctness of the Tribunal's view in allowing the claim of the assessee for certain expenditure on the basis of the confidential note of the Department for the subsequent year. Held that the objection stated in the appeal was solely on the Tribunal passing its order on the strength of the view of the Department for the subsequent year. There was no trace of unfairness, leave alone an illegality, in the order of the Tribunal in following the opinion expressed in the note by the Deputy Commissioner to give rise to a substantive question of law. The admitted statement in…

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