Law:

Section:

Section 263 of the Income-tax Act, 1961 - Revision - Of order prejudicial to interest of revenue - Block period 1-4-1995 to 27-2-2002 Where issues related to work-in-progress, salary to directors and unexplained deposits had been dealt with by Commissioner (Appeals) in appeal filed by assessee against block assessment, once same had been dealt with, in exercise of appellate jurisdiction, assessment order could not be regarded as incorrect and prejudicial to interest of revenue on such issues [In favour of assessee] On a perusal of clause (c) of section 263(1) it is vivid that the aforesaid section clearly stipulates that the powers of the Commissioner shall extend to such matters as had not been considered and decided in such appeal. Where issues related to work-in-progress, salary to directors and unexplained deposits had been dealt with by the Commissioner (Appeals) in the appeal filed by the assessee against assessment, once the same had been dealt with, in exercise of appellate jurisdiction, the assessment order could not be regarded as incorrect and prejudicial to the interest of the revenue on such issues on the basis of which the Commissioner could exercise jurisdiction under section 263 and hence, in such a case no substantial question of law arose from the Tribunal's order setting aside the Commissioner's order under section 263. Rohit Arya and Sanjay Lal for the Appellant. Sumit Nema for the Respondent. JUDGMENT Dipak Misra, J. - The present appeal preferred under section 260A of the Income-tax Act, 1961 (for brevity "the Act"), was admitted on the following substantial question of law : "Whether in the obtaining factual matrix, the Income-tax Appellate Tribunal is justified in holding that the action taken by the Commissioner of Income-tax under section 263 of the Act is not justified despite the fact that a finding had been recorded by the said authority as regards the suppression of work-in-progress for a sum of Rs. 18,41,35,526 ?" 2. The facts which are necessary to be adumbrated for adjudication of this appeal are, that a search and seizure operation was carried out under section 132(1) of the Act in the premises of the respondent-assessee and…

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