TMI Blog2011 (4) TMI 1163X X X X Extracts X X X X X X X X Extracts X X X X ..... ing the scope of the powers available to the AO while making fresh assessment pursuant to a set aside. Therefore, A.O. could not have traveled beyond the two specific issues contained in the order of remand passed by the CIT (Appeals). Tribunal was right in law and on facts. See Saheli Synthetics P. Ltd. (2008 (2) TMI 182 - GUJARAT HIGH COURT] - Decided against the Revenue - 55 of 2000 - - - Dated:- 7-4-2011 - HARSHA DEVANI MS., BELA TRIVEDI MS. JJ. JUDGMENT Ms. Harsha Devani J.- 1. In this appeal under section 260A of the Income-tax Act, 1961 ("the Act"), the appellant-Revenue has challenged the order dated February 8, 2000, made by the Income-tax Appellate Tribunal, Ahmedabad Bench "C" ("the Tribunal") in I. T. A. No. 3022 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and claims deserve proper examination by the Assessing Officer. He, therefore, set aside the impugned assessment order and directed the Assessing Officer to reframe the assessment afresh as per law after giving the assessee a reasonable opportunity of being heard in the matter. Being aggrieved, the assessee went in appeal to the Tribunal being I. T. A. No. 3022/Ahd/1991. 4. In the meanwhile, pursuant to the aforesaid order made by the Commissioner (Appeals), the Assessing Officer framed assessment under section 143(3) read with section 250 of the Act wherein, he travelled beyond the adjudication of the issues involved before the Commissioner (Appeals) and proceeded to invoke the provisions of section 115J of the Act. Being aggrieved, t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... aring on behalf of the appellant-Revenue and Mr. Manish J. Shah, learned advocate appearing on behalf of the respondent-assessee. 6. Mr. Manish Shah, learned advocate appearing on behalf of the respondent-assessee, has drawn the attention of the court to the decision of this High Court in the case of Saheli Synthetics P. Ltd. v. CIT [2008] 302 ITR 126 (Guj), to submit that the controversy involved in the present case stands concluded by the said decision. Mr. M. R. Bhatt, learned counsel for the appellant, is not able to dispute the aforesaid position. In the circumstances, it is not necessary to set out the rival contentions in detail. 7. In the case of Saheli Synthetics P. Ltd. v. CIT [2008] 302 ITR 126 (Guj), this court has held ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... de by the appellate authority is always in accordance with the directions given by the appellate authority for making a fresh assessment. But, the most material part of the provision is the opening portion which stipulates 'In an appeal against an order of assessment'. In other words, the entire gamut of powers which are available to the appellate authority is governed within the four corners of the subject-matter of appeal. The subject-matter of appeal is the assessment of income which forms part of the order of assessment in the light of the return of income filed by an assessee. There is a subtle, fine distinction between assessment simpliciter, namely, assessment of income, and the assessment order. In practice and in effect an assessme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cannot be read to mean that the appellate authority granted powers to the Assessing Officer in relation to items of assessment which were never forming part of appeal before the appellate authority. At the cost of repetition it is required to be noted that processing a new source of income which was on the record before the Assessing Officer but is not forming part of the subject-matter of appeal before the appellate authority can be undertaken by the appellate authority only in the course of enhancement of the assessment and, therefore, any set aside, which does not involve a proposal for enhancement, cannot be used for the purpose of expanding the scope of the powers available to the Assessing Officer while making fresh assessment pursuan ..... X X X X Extracts X X X X X X X X Extracts X X X X
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