TMI Blog1996 (9) TMI 107X X X X Extracts X X X X X X X X Extracts X X X X ..... is precluded from assessing income which has escaped assessment in the original assessment. If so, whether the Tribunal was legally correct in upholding the Commissioner of Income-tax (Appeals)' order deleting the addition of Rs. 8,96,713 made on account of non-disclosure of total contract receipt by the assessee ? 2. Whether in view of question No. 1 above, the Tribunal was legally correct in upholding the Commissioner of Income-tax (Appeals)' order deleting the addition of Rs. 50,310 made on account of undisclosed interest ? " The assessee is a company incorporated under the Companies Act. The Assessing Officer made assessment in respect of the assessment year 1975-76. The assessee, not being satisfied with the order of assessment ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eleted. " The Revenue being dissatisfied preferred an appeal before the Tribunal and the Tribunal after considering all the points confirmed the order passed by the Commissioner of Income-tax (Appeals). In respect of the addition of the amount, the Tribunal observed thus : " The learned Commissioner of Income-tax (Appeals) deleted the same because according to him the Assessing Officer had no jurisdiction to travel beyond the order of the Tribunal passed in I. T. A. No. 13/(Gau) of 1980 dated September 5, 1980. According to the Commissioner of Income-tax (Appeals), the Tribunal had set aside the first appellate order to consider the trading addition of Rs. 48,896 only. That was the limited point to be considered by the Assessing Offic ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... were not the subject-matter of the appeal. In this connection, Dr. Saraf has drawn our attention to section 254 of the Act. It is well-settled law that the Tribunal has all the powers to pass orders as it thinks fit ; but the only restriction is that it must arise out of the appeal. A reference can be made to a decision of this court in Assam Co-operative Apex Bank Ltd. v. CIT [1978] 112 ITR 257. In the said judgment, at page 269, this court observed thus : " That being so, the Tribunal's order in disposing of the appeals cannot travel beyond the disputed taxable amounts in question. But by the impugned remand order the learned Tribunal has in fact enlarged the scope of the subjects of the appeals, inasmuch as the securities other than t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the said amount and, therefore, the Tribunal also had no justification to give any direction for inclusion of the amount. Dr. Saraf has also referred to a decision of the Jammu and Kashmir High Court in Mohd. Ahsan Wani v. CIT [1977] 106 ITR 84. In the said case, the Jammu and Kashmir High Court had the occasion to consider a similar point. In the said case, at page 97 of the judgment, it was observed thus : " As regards the direction of the Appellate Assistant Commissioner for redetermining the income from the property, it is certainly open to the Appellate Assistant Commissioner to give such a direction, because, this is not a new source of income which had not been considered by the Income-tax Officer. But, to the extent that the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssment was set aside and a de novo assessment was directed to be made in accordance with law. Dr. Saraf has given much emphasis on the portion of the order saying that the assessment was to be made in the light of the categorical finding of the Appellate Assistant Commissioner that there was no work-in-progress, Dr. Saraf submits that the order of remand was a specific direction which is not permissible. We have gone through the order of the Appellate Tribunal. It is very clear and patent that the entire assessment was set aside and an assessment was directed to be made de novo. The categorical finding made by the Appellate Assistant Commissioner that there was no work-in-progress was only an observation made. It was not a direction. The ..... X X X X Extracts X X X X X X X X Extracts X X X X
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