TMI Blog1970 (11) TMI 33X X X X Extracts X X X X X X X X Extracts X X X X ..... on under section 66(1) of the Indian Income-tax Act, 1922, at the instance of the assessee: " Whether, on the facts and in the circumstances of the case, the Appellate Assistant Commissioner was right in sustaining the addition of Rs. 13,189, even though he came to the conclusion that there had been no inflation in the purchase price, indulged in by the assessee ?" M/s. Parameswara Oil Mill, Chaluvadi Gurunadham Co., Nellore (hereinafter referred to as "the assessee"), was assessed for the assessment year 1960-61 corresponding to the official year ending with March 31, 1960, as a registered firm. The assessee-firm was carrying on the business of an oil miller in purchasing groundnuts, decorticating them, crushing the kernel into oil a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... no evidence of inflation in the purchase price. However, he sustained the addition of Rs. 13,189 under the head "Undisclosed sources" as the source of the credits was not satisfactorily explained by the assessee. The assessee once again preferred an appeal to the Income-tax Appellate Tribunal. The assessee contended before the Tribunal that the Appellate Assistant Commissioner had no jurisdiction to add a sum of Rs. 13,189 as income under the head "Undisclosed sources" because it constituted a new source of income. This contention of the assessee did not find favour with the Tribunal which dismissed the appeal. Hence this reference. Sri Gangadhara Rao, for the assessee, contends that the Appellate Assistant Commissioner has no jurisdictio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d with a direction to the Income-tax Officer to consider what in his opinion has been erroneously left over and make a proper assessment according to law. In Commissioner of Income-tax v. McMillan Co. the Supreme Court has approved the following observations made by Chagla C.J. in Narrondas Manordass v. Commissioner of Income-tax : "It is clear that the Appellate Assistant Commissioner has been constituted a revising authority against the decisions of the Income-tax Officer; a revising authority not in the narrow sense of revising what is the subject-matter of the appeal, not in the sense of revising those matters about which the assessee makes a grievance, but a revising authority in the sense that once the appeal is before him he can ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... direction to include in the assessment something or some items which ought to have been included by him, which he failed to do so. In the instant case, the item with which we are now concerned is the addition of Rs. 13,189, the peak credit which was found in the account of one of the partners, viz., C. Kannaiah. The addition of Rs. 14,000 was made by the Income-tax Officer on the ground that there was inflation in the purchase price of groundnuts by the assessee. Though the Appellate Assistant Commissioner, on the material before him after remand, has arrived at a conclusion that there was no inflation in the purchase price of groundnuts, still it was open to him to sustain the addition of the cash credit of Rs. 13,189, the source of which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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