HIGH COURT OF DELHI

Commissioner of Income-tax

v.

Bindal Apparels

Madan B. Lokur and Dr. S. Muralidhar, JJ.

IT Appeal No. 1706 of 2006

August 24, 2007

 

 

Section 2(7A) of the Income-tax Act, 1961 - Assessing Officer - Assessment year 1999-2000 - Tribunal quashed assessment made by Additional Commissioner holding that Additional Commissioner as per definition in section 2(7A) could not be an Authority to perform or exercise all or any of powers and functions of an Assessing Officer to make an assessment of income - Whether in view of amendment to section 2(7A) by Finance Act, 2007 with retrospective effect from 1-6-1994, Tribunal was not justified in its action and was to be directed to hear matter afresh on merits - Held, yes

FACTS

The Tribunal quashed assessment made by Additional Commissioner holding that in view of absence of the Income-tax Authority, i.e., ‘Additional Commissioner’ in the definition contained in section 2(7A), an Additional Commissioner could not be an authority to exercise or perform all or any of the powers and functions of an Assessing Officer to make an assessment of income.

On revenue’s appeal:

HELD

Section 2(7A) has been amended with retrospective effect from 1-6-1994 by the Finance Act, 2007. [Para 3]

The result of that amendment would necessitate the matter being heard afresh by the Tribunal since it had not dealt with merit of the case. [Para 5]