TMI Blog1995 (2) TMI 416X X X X Extracts X X X X X X X X Extracts X X X X ..... was not necessary in law for the Tribunal to go into the question as to whether the applicant, M/s. Ranchhoddas Bhaichand and Rentio Foods, had shown sufficient cause for not preferring the additional grounds within the period of limitation of 60 days prescribed to file an appeal under section 55(4) of the said Act?" 2.. The assessee, who is the proprietor of two concerns run under the name and style of "Ranchhoddas Bhaichand" and "Rentio Foods", Navapur, in the district of Dhule, in the State of Maharashtra, is registered as a dealer under the Bombay Sales Tax Act, 1959 ("the Act"). It manufactures all kinds of pulses in "Ranchhoddas Bhaichand" and imports ready pulses for sale in "Rentio Food". The assessee was assessed by the Sales Tax Officer, Dhule, under section 33(3) of the Act for the period November 3, 1986 to October 20, 1987, by his order of assessment dated August 28, 1989. Consequent to the above order, a demand of Rs. 36,041 was raised against the assessee, which comprised of Rs. 19,003 on account of tax and Rs. 17,038 on account of penalty under section 36(2)(c) and interest under section 36(3)(b) of the Act. The order imposing penalty and interest was incorporat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ion. Aggrieved by the above order of the Tribunal, which pertains to the rejection of the application of the assessee for raising additional grounds of appeal by treating it as a separate appeal and dismissing it on the ground of limitation, the assessee applied for reference of the question of law arising out of it to this Court under section 61(1) of the Act, which the Tribunal has done by the present reference. 4.. We have heard Mr. P.V. Surte, learned counsel for the assessee, who submits that the Assistant Commissioner of Sales Tax (Appeals) as well as the Tribunal proceeded on an erroneous assumption that the application filed by the assessee raising additional grounds of appeal was a separate appeal. According to the learned counsel, it is clear from the language of section 55(1)(a) of the Act that there can be only one appeal against the order passed by the Sales Tax Officer to the Assistant Commissioner. It does not contemplate more than one appeal against the very same order. As such, if an assessee, who has filed an appeal against the order of assessment proposes to raise additional grounds, the only remedy available to him is to make an application in the original app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e him and dismissed the same as barred by limitation. The sole question that falls for determination is whether the Assistant Commissioner was justified in doing so. 7.. Section 55(1) provides for appeal against original orders passed under the Act or the Rules made thereunder by different authorities. An appeal against such order made by the Sales Tax Officer lies to the Assistant Commissioner. On such appeal being filed, the Assistant Commissioner can confirm, reduce, enhance or annul the assessment and confirm or cancel the order of penalty or vary it so as either to enhance or reduce the penalty. The powers of the Assistant Commissioner in an appeal under section 55 of the Act are thus very wide. His powers are not confined to consider only the points raised by the assessee in the grounds of appeal or urged at the time of hearing of the appeal. It is open to him to correct the Sales Tax Officer not only with regard to the matter raised by the assessee in the memorandum of appeal, but also with regard to a matter which has been considered by the Sales Tax Officer and decided in course of the said order. The only limitation upon his powers is the subject-matter of order appeale ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ner. 10.. In our opinion, only one appeal can be filed against the order of the assessing officer. If after filing the appeal, the assessee seeks to amend the grounds of appeal and raise additional grounds, he may make an application to the appellate authority for that purpose and such an application cannot be regarded as a separate appeal filed by the assessee under section 55 of the Act. Such an application for raising additional grounds has to be treated as a miscellaneous application in a pending appeal and decided on its own merits. Somewhat similar controversy, arising under the Income-tax Act, 1961, came up before the Supreme Court in Jute Corporation of India Ltd. v. Commissioner of Income-tax [1991] 187 ITR 688 and before the Full Bench of this Court in Ahmedabad Electricity Co. Ltd. v. Commissioner of Income-tax [1993] 199 ITR 351. The controversy before the Supreme Court was whether additional grounds of appeal could be raised in an appeal before the Appellate Assistant Commissioner under section 251(1)(a) of the Income-tax Act, 1961. The Supreme Court held that the power of the Appellate Assistant Commissioner is co-terminous with that of the Incometax Officer and, if ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Supreme Court was followed by the Full Bench of this Court in Ahmedabad Electricity Co. Ltd. v. Commissioner of Incometax [1993] 199 ITR 351. In this case, the ratio of the decision of the Supreme Court was applied by this Court to decide the powers of the Income-tax Appellate Tribunal under section 254(1) of the Income-tax Act, 1961 and it was held that the powers of the Income-tax Appellate Tribunal were wide enough to permit any additional grounds of appeal, if in its discretion and for good reason, the Tribunal thinks it necessary or permissible to do so. 12.. The ratio of the above two decisions squarely applies to the powers of the appellate authority under section 55 of the Bombay Sales Tax Act, 1959. As stated earlier, section 55 of the said Act is couched in very wide terms and an appeal is provided under this section against "any order" passed by an officer subordinate to the appellate authority. It is, therefore, the entire order of the subordinate authority which is the subject-matter of an appeal. Hence if, for one reason or the other, the assessee fails to challenge any findings of the assessing authority on a particular point, he is not debarred from making ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
