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

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ITA/158/1999HC 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 ITAT was justified in setting aside the order passed by the CIT under Section 263. The Tribunal's decision was based on the judgment of the High Court in the case of Commissioner of Income Tax vs. Gabriel India Ltd., reported in 203 I.T.R. 108, and also acted upon instructions contained in a CBDT Circular. The court found that the issue was squarely covered by these authorities. Consequently, the Rule issued in these applications was discharged, and all the applications were disposed of. The operative direction was to discharge the rule and dispose of the applications, implying the ITAT's order was upheld.

What were the facts?

These are four Income Tax Application (ITA) numbers 154, 155, 157, and 158 of 1999, filed by the Commissioner of Income Tax (the petitioner) against Smt. Vijaya V. Karvekar (the respondent). The applications pertain to assessment years 1985-86, 1986-87, 1987-88, and 1988-88. The petitioner is challenging an order passed by the Income Tax Appellate Tribunal (ITAT). The ITAT had set aside an order passed by the Commissioner of Income Tax (CIT) under Section 263 of the Income Tax Act, 1961. The ITAT relied on a High Court judgment and a CBDT Circular in its decision. None appeared for the respondent.

What were the issues?

The High Court admitted the applications on the following questions of law: 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? 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 it was prejudicial to the interest of revenue? The petitioner argued that the ITAT erred in its findings. The revenue contended that the assessment order passed by the AO was erroneous and prejudicial to the interest of revenue, particularly as it violated a specific Board's instruction (No.1617 dated 18/5/1985). The revenue's arguments were based on the premise that the AO's order was flawed and detrimental to the government's revenue. The judgment does not record any arguments from the respondent.

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 : HCBM020055061999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:09

- = : 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 05:59:09

- = : 3 : = -

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