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Section 263 of the Income-tax Act, 1961 - Revision - Of orders prejudicial to interest of revenue - Assessment year 1979-80 - Whether in view of fact that Explanation inserted in section 263 enabling Commissioner to revise order passed by IAC became operative with effect from 1-10-1984, Tribunal was justified in holding that Commissioner had no jurisdiction under section 263 to revise order made by IAC (Asstt.) taking into consideration that both orders that was of IAC and of Commissioner under section 263 were made before insertion of the Explanation to section 263(1) by Taxation Laws (Amendment) Act, 1984 with effect from 1-10-1984 - Held, yes [In favour of assessee] CASES REFERRED TO CIT v. Shri Arbuda Mills Ltd. [1998] 98 Taxman 457 / 231 ITR 50 (SC) (para 5). Ms. Rashmi Chopra for the Appellant. S. Balakrishnan and S. Prasad for the Respondent. JUDGMENT 1. Relevant to the assessment year 1979-80, the following question has been referred for our opinion : "Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal erred in holding that the Commissioner had no jurisdiction under section 263 to revise the order made by the IAC (Asstt.) taking into consideration that both the orders that is of the IAC and of the Commissioner under section 263 were made before the insertion of the Explanation to section 263(1) by the Taxation Laws (Amendment) Act, 1984 with effect from October 1, 1984 ?" 2. As the question itself suggests the amendment to section 263(1) of the Income-tax Act, 1961 ("Act") was brought with effect from October 1, 1984 by the Taxation Laws (Amendment) Act, 1984 ("1984 Amendment Act"). We have seen the statute which is printed in [1984] 149 ITR (St.) 97. 3. Section 47 of the 1984 amendment Act reads as under : "47. Amendment of section 263. - In section 263 of the Income-tax Act, with effect from the 1st day of October, 1984,- (a) In sub-section (1), the following Explanation shall be inserted at the end, namely :- 'Explanation.-For the removal of doubts, it is hereby declared that, for the purposes of this sub-section, an order passed by the Income-tax Officer shall include- (a) an order of assessment made on the…

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