Commissioner of Income Tax vs Kewal Krishan Baweja

A.M. Sapre, J.—This is an appeal filed by Commissioner of Income Tax (Revenue) u/s 260A of the Income Tax Act against an order dated 18-8-2003 passed by ITAT in ITA No. IT(SS)A No. 25 /IND /2002. This appeal was admitted for final hearing on following substantial questions of law:

Whether ITAT was justified in quashing the assessment order, dated 25-11-1997 framed u/s 158BC ?

Whether there were valid grounds available to the Tribunal to quash the assessment order dated 25-11-1997 u/s 158BC and if so whether order of Tribunal can be sustained on those grounds ?

Heard Shri R.L. Jain, learned Sr. Counsel with Ku. Veena Mandlik for the appellant/Revenue and Shri G.M. Chaphekar, learned Sr. Counsel with Shri D.S. Kale, for respondent/assessee.

Without unnecessary complicating the factual narration of facts involved in the case we may take note of one undisputed fact that when the order of Commissioner passed u/s 263 of the Income Tax Act dated 23-3-2000 was already set aside by the Tribunal at the instance of assessee in his appeal being I.T.(SS)A No. 6/IND/2000 by their order dated 4-2-2003 and the said order was not questioned by the revenue in further appeal to this Court then in such event, the Tribunal was justified in passing the impugned order in favour of assessee. Indeed the impugned order was sequel to the order passed by Tribunal on 4-2-2003 in the assessee''s appeal referred supra and hence the same has to be upheld being passed in accordance with the earlier order passed by Tribunal in assessee''s favour as a consequential one.

In the block assessment for the period 1-4-1986 to 31-10-1986 an assessment order was passed in respect of an income already disclosed by the assessee in his regular return filed u/s 139 of the Act. The contention of assessee before the Commissioner in revisional proceedings and later before the Tribunal was that income disclosed in the return filed u/s 139 of the Act cannot be treated as income from undisclosed sources for the purpose of block assessment. This contention found favour to Tribunal and accordingly the order passed by Commissioner in Section 263 proceedings was set aside in IT(SS) A/6/IND/2000 by the Tribunal vide order dated 4-2-2003.

In these circumstances this appeal which arise out of assessment proceedings has to be dismissed because the basis for assessment insofar as that part of income which was subject matter of regular return has become final by the decision of Tribunal rendered on 4-2-2003 in 1T(SS)A/. 6/IND/2000 in favour of assessee.

In view of aforesaid limited discussion which alone is necessary we dismiss the appeal and uphold the order of Tribunal.

No cost.