TMI Blog1982 (7) TMI 128X X X X Extracts X X X X X X X X Extracts X X X X ..... The only ground raised in the appeal is that the AAC erred in bringing to tax a sum of Rs. 15,000 as income from profession. 3. The assessee was carrying on the profession of consulting engineer for over 40 years. Due to advancing age and also indifferent health, the assessee, on 1-4-1976, assigned his profession along with goodwill for Rs. 85,000 to one Shri A.D. Savardekar, who had been workin ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee that Rs. 64,000, being the price of goodwill, cannot be brought to tax, the ITO brought the amount to tax as representing capital gains. He did not bring to tax the balance amount of Rs. 20,000 under any head and the order was silent with regard to this matter. 4. In appeal, the AAC, relying upon the ruling of the Supreme Court in the case of CIT v. B.C. Srinivasa Setty [1981] 128 ITR ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ht to tax for the first time by way of enhancement, any amount under a head, under which no amount had been taxed at all by the ITO. The learned departmental representative, while not disputing the proposition, contended that a reading of the order of the ITO would show that he had actually intended to tax the amount. 5. The assessee has to succeed in his contention. A reading of the assessment ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ainst. In the case of Rai Bahadur, it was held by the Supreme Court that for taxing an amount for the first time in appeal, there must be something in the assessment order to show that the ITO applied his mind to the particular subject-matter or the particular source of income with a view to its taxability or to its non-taxability, and not to any incidental connection. In the present case, the ITO ..... X X X X Extracts X X X X X X X X Extracts X X X X
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