Mitsubishi Corporation Vs ACIT (Delhi High Court)
Delhi High Court held that once the Tribunal had called upon the AO to examine the issue afresh, the said direction could not have been disregarded by reference to a Circular No. 549 dated 31 October 1989 issued by the CBDT.
Facts- The writ petitions impugn the order dated 30 September 2021 passed by the Assessing Officer, the first respondent herein, and who while framing a draft assessment order has chosen to rely upon CBDT Circular No. 549 dated 31 October 1989, to hold that the petitioner cannot be accorded relief which would result in the assessed income falling below that which was disclosed in the Return of Income.
Conclusion- Held that while ordinarily an assessee may be bound by the Return of Income as furnished, in case the Tribunal were to admit a question and proceed to accord relief, the same cannot be denied or be made subject to a Return of Income being revised. The insistence of the respondents on a revision of the return being a precondition clearly fails to take into consideration the plenary powers which stand conferred upon the Tribunal by virtue of Section 254 of the Act.
