By K. B. Bhujle, Advocate
New Page 2
42 Revision : S. 263 of Income-tax Act,
1961 : A.Y. 1995-96 : KVSS 1998 : After certificate having been issued under
KVSS, Commissioner not justified in exercising power u/s.263.
[Siddhartha Tubes Ltd. v. CIT, 170 Taxman 233 (Del.)]
For the A.Y. 1995-96, the assessment of the assessee company
was completed u/s.143(3) of the Income-tax Act, 1961. During the pendency of
appeal the assessee filed declaration under KVSS 1998. The declaration was
accepted and a certificate, as contemplated u/s.90(2) of the Scheme was duly
issued and the matter was finally settled. Thereafter, the Commissioner set
aside the assessment order u/s. 263 with a direction to recalculate the
deduction u/s.80HH, u/s.80-I and u/s.80HHC. The Tribunal upheld the order passed
by the Commissioner.
The Delhi High Court allowed the appeal filed by the assessee
and held as under :
“(i) The Commissioner, in his order, had duly observed that
the Assessing Officer was not satisfied with the explanation of the assessee
and had, thus, recalculated deduction u/s.80HH and u/s.80-I after excluding
the profit from export of trading goods. It was, therefore, not on any
concealment of information that it was proposed to procede u/s.263, nor any
steps were suggested for cancellation of the declaration as per the provisions
of the KVSS.
(ii) Under those circumstances, as after the certificate
having been issued under the KVSS, it was not permissible to revise the said
assessment order u/s.263 and the Tribunal, therefore, had erred in holding to
the contrary.”
