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Jurisdiction of Income-tax Officer to enhance assessment on directions of Appellate Assistant Commissioner. Analysis: The case involved a dispute regarding the jurisdiction of the Income-tax Officer to enhance the assessment on the directions of the Appellate Assistant Commissioner. The initial assessment under section 143(3) concluded with an addition of Rs. 5,000 to the assessee's income from undisclosed sources for investing in house construction. The Appellate Assistant Commissioner set aside the assessment, directing the Income-tax Officer to examine the case afresh and follow the correct legal procedure. The Income-tax Officer, after obtaining a valuation report, made further additions to the income from undisclosed sources, leading to a total addition of Rs. 20,208. Both the assessee and the Revenue challenged this before the Income-tax Appellate Tribunal. The Tribunal observed that the Income-tax Officer exceeded his jurisdiction by enhancing the assessment beyond the initial Rs. 5,000 addition, as directed by the Appellate Assistant Commissioner. The Tribunal held that the Appellate Assistant Commissioner did not provide specific directions for enhancement, and therefore, the additional additions were unwarranted. However, the High Court disagreed with the Tribunal's interpretation. It emphasized that when an assessment order is set aside by the Appellate Assistant Commissioner, the Income-tax Officer is bound by the directions given for making a fresh assessment. The Court highlighted that the Income-tax Officer has the same powers in the fresh assessment as in the original assessment, subject to the directions provided by the appellate authority. Furthermore, the Court cited the provisions of section 251(1)(a) which empower the Appellate Assistant Commissioner to enhance the assessment and guide the Income-tax Officer in making a fresh assessment. The Court stressed that the Income-tax Officer must adhere to the directions of the higher authorities and cannot exceed the scope of those directions. It clarified that if the Appellate Assistant Commissioner sets aside the assessment entirely, the Income-tax Officer has the discretion to reassess the case without limitations, as long as the correct legal procedure is followed. In this case, the High Court concluded that the directions of the Appellate Assistant Commissioner to examine the case afresh and follow the correct legal procedure did not restrict the Income-tax Officer from enhancing the assessment beyond the initial addition of Rs. 5,000. The Court referenced a previous case to support its decision, highlighting that the Income-tax Officer retains full jurisdiction to make necessary additions during a fresh assessment, as long as the directions of the Appellate Assistant Commissioner are followed. Ultimately, the High Court ruled in favor of the Revenue, stating that the Income-tax Officer had the jurisdiction to enhance the assessment based on the directions provided by the Appellate Assistant Commissioner.
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