TMI Blog1974 (9) TMI 44X X X X Extracts X X X X X X X X Extracts X X X X ..... dingly, the total income was thus determined at Rs. 23,204 by an order dated February 14, 1964. Aggrieved by the estimate made by the Income-tax Officer in respect of his business in sugar, the assessee filed an appeal to the Appellate Assistant Commissioner. By an order dated June 19, 1964, the Appellate Assistant Commissioner set aside the order of assessment and directed the Income-tax Officer to re-do the assessment in the light of the observations contained in his order. Thereafter, while considering the matter afresh in the light of the directions given by the Appellate Assistant Commissioner, the Income-tax Officer called for a wealth statement from the assessee. In the wealth statement filed by the assessee, he disclosed cash to the tune of Rs. 1,19,339 as part of his assets as on March 31, 1961. The Income-tax Officer considered that out of this amount a sum of Rs. 87,595 respresented income from undisclosed sources. Even after the reconsideration in the light of the order of the Appellate Assistant Commissioner dated June 19, 1964, the Income-tax Officer estimated the income from the business in sugar at Rs. 15,000 as it was done originally. But in addition to this ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Appellate Assistant Commissioner. On the other hand, the learned counsel for the assessee submitted that the Appellate Assistant Commissioner set aside the assessment order and directed, the Income-tax Officer to make a fresh assessment only in regard to the assessment of the income from the business in sugar, and that, therefore, the Income-tax Officer's jurisdiction is restricted to the determination of that particular point alone, and he could not consider any source of income which he omitted to consider on the earlier occasion or any income which he considered and did not include in the assessable income. The Appellate Assistant Commissioner, in his order dated June 19, 1964, after pointing out some of the aspects which were not taken into account by the Income-tax Officer in estimating the income from the business in sugar, ultimately held "after gathering all these materials, the assessment should be re-done in accordance with law and after giving a suitable opportunity to the appellant's representative. In the result the assessment is set aside and the Income-tax Officer is directed to re-do the same in the light of the above observations. " Section 251 deals with t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r of assessment is set aside and the Income-tax Officer is directed to make a fresh assessment, we do not find anything in the provisions of the Act which would restrict the powers of the Income-tax Officer in passing an order under section 143(3). Once the order of assessment is set aside and the matter comes up for fresh assessment before the Income-tax Officer, we are of opinion that the powers will have to be decided with reference to the provisions under section 143(3) and not with reference to any observations made by the Appellate Assistant Commissioner in his order or with reference to the scope of the appeal before the Appellate Assistant Commissioner. A similar view was taken by this court in Sri Gajalaksmi Ginning Factory Ltd. v. Commissioner of Income-tax . In that case, the assessee-company purchased a ginning factory with certain lands appurtenant thereto and also a plot containing some fruit stalls. In one of the subsequent accounting years, the assessee sold some portion of the land and also the fruit stalls and realised a profit of Rs. 9,397 from the sale of the land, and Rs. 3,800 from the sale of the fruit stalls. The Income-tax Officer treated the sum of Rs. 9,3 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er and the powers of the Appellate Assistant Commissioner in such a remanded matter, we are of the view that the ratio of this decision is applicable even for the purpose of determining the jurisdiction of the Income-tax Officer after the order has been set aside by the Appellate Assistant Commissioner, with a direction to make a fresh assessment. More directly a point was considered by the Allahabad High Court in J. K. Cotton Spinning ,Weaving Mills Co. Ltd. v. Commissioner of Income-tax. That case related to the jurisdiction of the Income-tax Officer to include the "deemed dividend" under section 23A after the Appellate Assistant Commissioner set aside the original assessment order, and remanded the proceedings for a fresh assessment under section 31 of the Indian Income-tax Act, 1922. It was held that though the Income-tax Officer, while making a fresh assessment in compliance with the Appellate Assistant Commissioner's directions, was bound by the directions given, subject to carrying out those directions, he has the same powers as he had originally when making the assessment order under section 23. It is not in dispute in our case that the direction of the Appellate Assist ..... X X X X Extracts X X X X X X X X Extracts X X X X
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