TMI Blog1982 (2) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... of Rs. 1,08,220. Subsequently, it filed a revised return showing an income of Rs. 2,39,861. In arriving at this income, the assessee had included as part of its income certain amounts due to share brokers written back to the accounts aggregating to Rs. 3,00,127 as considered liable under section 41(1) of the Income-tax Act, 1961 (' the Act '). In response to the requirement of the ITO to support the return under section 43(2) of the Act, the assessee had filed copy of a letter of the stock exchange and a copy of an award in the dispute between B.M. Choksey Co. and the assessee, under which the assessee is seen to have paid a sum of Rs. 35,000 in full and final settlement of all the claims of the said B.M. Choksey Co. As a consequence, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee itself returned, the assessee cannot be said to be aggrieved by the order and, consequently, it was not entitled to agitate the claim in appeal. Reference was made and reliance was placed on the following decisions---Ramanlal Kamdar v. CIT [1977] 108 ITR 73 (Mad.), Addl. CIT v. Gurjargravures (P.) Ltd. [1978] 111 ITR 1 (SC) and CIT v. Alchemic (P.) Ltd [1981] 130 ITR 168 (Guj ). 4. According to us, the cases relied on by the departmental representative are clearly distinguishable, both on facts and on points that arose for consideration, and therefore, the ratio of the decisions do not apply to negative the claim of the assessee in this case. The decision of the Madras High Court in Ramanlal Kamdar's case was concerned with the asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s income wrongly as taxable. The provisions of section 246 of the Act, providing for appeal, entitle an assessee to file an appeal against the order of the AAC under clause (c) denying the liability to be assessed or against an order under section 143(3) of the Act where he objects to the amount of income assessed or the amount of tax determined. The right of appeal against an order under section 143(3), as in this case, is an absolute right not hedged with any limitations or restrictions except that the assessee must be aggrieved by the amount of income assessed or tax determined. The assessee's state of being aggrieved by an order, which is appellable under section 246(c), cannot be held to be confined only to a case where the ITO in the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... able thereon. In doing so, he may proceed on the basis that, where an assessee discloses that a certain sum of money has been received by him, the fact of that receipt may be accepted without anything more as constituting an admission on the part of the assessee. That would be an admission as to a state of fact. But whether the receipt can be considered as taxable income is quite another matter, and consideration of that question leads into the realm of law. If the Income-tax Officer assesses an assessee upon a receipt which is not taxable in law, it is always open to the assessee to take the case in appeal or in revision thereafter. It is then for the Appellate Assistant Commissioner or the Commissioner of Income-tax, as the case may be, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declared it as its income as held by the Allahabad High Court. This is not to say that on the facts of this case, the amount returned and assessed is not taxable, which has got to be examined. An that we have stated above is only to emphasise the fact that an assessee, if he considers himself to be aggrieved by the total income assessed or tax determined on account of some amount of income having been taxed which he believes is not taxable even though he has returned it as his income under an erroneous or mistaken view of the law, is competent to file an appeal and such appeal must be disposed of on merits. 7. In the circumstances stated above, we set aside the order of the AAC and direct him to consider the assessee's grounds of appeal ..... X X X X Extracts X X X X X X X X Extracts X X X X
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