THE C.I.T.NASHIK vs. SMT.VIJAYA V.KAVEKAR

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ITA/157/1999HC Bombay06 March 2007Bench: HON'BLE SHRI JUSTICE DR. S. RADHAKRISHNAN, HON'BLE SHRI JUSTICE J.P. DEVADHAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue was squarely covered by the judgment of their own High Court in the case of Commissioner of Income Tax V/s. Gabriel India Ltd. (reported in 203 I.T.R.108). The Tribunal had relied on this judgment and also acted upon the instructions contained in a CBDT Circular. Consequently, the Court found no reason to interfere with the ITAT's decision. The Rule, which was likely issued upon admission of the applications, was discharged, and all applications were disposed of. The operative direction was to discharge the rule and dispose of the applications, effectively upholding the ITAT's order setting aside the CIT's Section 263 order. No issue was expressly left undecided.

What were the facts?

The Commissioner of Income Tax (petitioner) filed applications before the Bombay High Court challenging orders passed by the Income Tax Appellate Tribunal (ITAT). The respondent is Smt. Vijaya V. Karvekar. The assessment years involved are 1985-86, 1986-87, 1987-88, and 1988-88. The ITAT had set aside an order passed under Section 263 of the Income Tax Act, 1961, by the Commissioner of Income Tax (CIT). The ITAT's decision was based on a judgment of the High Court in the case of Commissioner of Income Tax V/s. Gabriel India Ltd. and on instructions contained in a CBDT Circular. The petitioner's counsel was heard, while no one appeared for the respondent.

What were the issues?

1. Whether the ITAT was right in holding that the order passed by the Assessing Officer (AO) cannot be termed as erroneous and prejudicial to the interest of revenue? (Question of law) 2. Whether the ITAT was justified in setting aside the order passed by the CIT under Section 263 when the assessment order passed by the AO was in violation of the Board's instruction No.1617 dated 18/5/1985 and also prejudicial to the interest of revenue? (Question of mixed law and fact, turning on Section 263) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The ITAT had set aside the CIT's order under Section 263, relying on the High Court's judgment in CIT V/s. Gabriel India Ltd. and CBDT Circular instructions. Revenue's Contentions: The revenue, through the Commissioner of Income Tax, argued that the assessment order passed by the AO was in violation of Board's instruction No.1617 dated 18/5/1985 and was prejudicial to the interest of revenue, implying the CIT's order under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME TAX APPLICATION NO.154 OF 1999 INCOME TAX APPLICATION NO.154 OF 1999 INCOME TAX APPLICATION NO.154 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.155 OF 1999 INCOME TAX APPLICATION NO.155 OF 1999 INCOME TAX APPLICATION NO.155 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.157 OF 1999 INCOME TAX APPLICATION NO.157 OF 1999 INCOME TAX APPLICATION NO.157 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.158 OF 1999 INCOME TAX APPLICATION NO.158 OF 1999 INCOME TAX APPLICATION NO.158 OF 1999 The Commissioner of Income tax ..Petitioner. V/s. Smt. Vijaya V.Karvekar ..Respondent. Mr.B.M.Chatterji with Ms.P.P.Bhosle for petitioner in all the applications. None for the respondent. CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ.

DATED : 6TH MARCH, 2007. DATED : 6TH MARCH, 2007. DATED : 6TH MARCH, 2007.

ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) Heard the learned counsel for the petitioner and the respondent. The above applications were admitted on the following question of law:- 1. Whether the ITAT was right in holding that the order passed by the A.O. cannot be termed as erroneous and prejudicial to the interest of revenue ? 2. Whether the ITAT was justified in setting aside the order U/s.263 passed by the CIT when the assessment order passed by the A.O. was in violation of the Board’s instruction No.1617 dated 18/5/1985 and also it was prejudicial to CNR No : HCBM020055051999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:07

- = : 2 : = - the interest of revenue ? 2. The above applications pertain to the assessment years 1985-86, 1986-87, 1987-88 and 1988-88, respectively. 3. The Tribunal had set aside the order under section 263 by relying on the Judgment of our High Court in the case of Commissioner of Income Tax V/s. Commissioner of Income Tax V/s. Commissioner of Income Tax V/s. Gabriel India Ltd. Gabriel India Ltd. Gabriel India Ltd. reported in 203 I.T.R.108 203 I.T.R.108 203 I.T.R.108 and also acted upon the instructions contained C.B.D.T. Circular. 4. Since the issue is squarely covered, Rule stands discharged. 5. All the applications are disposed of. (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:07

- = : 3 : = -

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