Assessee filed revised return on ground that said revision was necessitated in light of settlement which had been arrived at with revenue in earlier years. Assessing Officer while framing order of assessment refused to accept aforesaid declarations. ssessee raised additional grounds before Commissioner(Appeals) with respect to error in taxing purchases while taxing sales and not excluding turnover from export of goods from India and error in holding that its Indian subsidiary was a PE. Commissioner (Appeals) upheld order of Assessing Officer. Tribunal remanded matter to Assessing Officer-However, Assessing Officer by relying on CBDT Circular no. 549, dated 31-10-1989 held that assessee could not be accorded relief which would result in assessed income falling below to disclosed income in return of income. On writ the Court held that   while ordinarily an assessee might be bound by return of income as furnished, in case Tribunal were to admit a question and proceed to accord relief, same could not be denied or be made subject to a return of income being revised. Insistence of revenue on a revision of return being a precondition clearly failed to take into consideration plenary powers which stood conferred upon Tribunal by virtue of section 254 once Tribunal had called upon Assessing Officer to examine issue afresh, said direction could not have been disregarded by reference to a Circular issued by CBDT. The Assessing Officer is directed to pass the order in accordance with law.