section 254/income-tax act

Last updated: 25 June 2009

Court :
HIGH COURT OF DELHI

Brief :
Section 254, read with section 201, of the Income-tax Act, 1961 - Appellate Tribunal - Powers of - Assessment years 1994-95 to 2000-01 - Tribunal, by order dated 30-11-2005, held that once revenue had collected tax in respect of impugned payments made by assessee, no action under section 201(1) was required - It, therefore, quashed order passed by Commissioner (Appeals) under section 201 and directed Assessing Officer to determine matter afresh - Assessee accepted said order, but revenue filed application under section 254(2) contending that since no direction with regard to section 201(1A) had been given, order dated 30-11-2005 required modification - Tribunal allowed application and gave liberty to Assessing Officer to invoke provisions of section 201(1A) in case facts stated by assessee were found to be incorrect - Assessee had filed instant appeal against that order - Whether what Tribunal had done in impugned order was nothing more than making explicit what was already implicit in order dated 30-11-2005 and since assessee had accepted order dated 30-11-2005, no interference was called for with impugned order - Held, yesC.S. Aggarwal and Prakash Kumar for the Appellant. R.D. Jolly for the Respondent.

Citation :
A.B. Hotels Ltd. v. Commissioner of Income-tax*