TMI Blog1977 (11) TMI 1X X X X Extracts X X X X X X X X Extracts X X X X ..... jarat-I, Ahmedabad, on a certificate under section 261 of the Income-tax Act, 1961, granted by the Gujarat High Court, raises a question relating to the powers of the Appellate Assistant Commissioner in disposing of an appeal. The respondent, a company carrying on the business of copper engraving and manufacturing of labels, appealed to the Appellate Assistant Commissioner against an order of assessment made under section 143(3) of the Income-tax Act, 1961, and one of the grounds of appeal was that the Income-tax Officer had erred in not giving the assessee any benefit under section 84 of the Act. The assessment year was 1963-64. No claim, however, had been made before the Income-tax Officer when he completed the assessment that the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nordass v. Commissioner of Income-tax [1957] 31 ITR 909 (Bom), decided by the Bombay High Court, the High Court found it well settled that the various items of income or deductions which have been subjected to the process of assessment constitute the subject-matter of assessment, and that if there is any item of income or claim for deduction which is not processed by the Income-tax Officer, it would not be a part of the subject-matter of assessment and the Appellate Assistant Commissioner would not have the power to consider and process it in an appeal preferred by the assessee. Both the decisions, Commissioner of Income-tax v. Shapoorji Pallonji Mistry [1962] 44 ITR 891 (SC) and Narrondas Manordass v. Commissioner of Income-tax [1957] 31 I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment. It is true that no claim for exemption having been made, by the assessee before the Income-tax Officer, there was no decision of the Income-tax Officer, express or implied, holding that a certain portion of profit of the assessee was not exempt from tax under section 84. But in order that the Appellate Assistant Commissioner should be entitled to interfere in appeal on a particular point, it is not necessary that there should be a decision of the point given by the Income-tax Officer. It is enough if the particular item of income in relation to which the point is sought to be raised has come in for consideration by the Income-tax Officer and has been subjected by him to the process of assessment. " We do not find it possible to ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... enhancement of the assessment by the Appellate Assistant Commissioner under section 31(3) of the Indian Income-tax Act, 1922. This court held on a consideration of the earlier authorities including Commissioner of Income-tax v. Shapoorji Pallonji Mistry [1962] 44 ITR 891 (SC) and Narrondas Manordass v. Commissioner of Income-tax [1957] 31 ITR 909 (Bom), that the Appellate Assistant Commissioner had no jurisdiction under section 31(3) " to assess a source of income which has not been processed by the Income-tax Officer " and that--See [1967] 66 ITR 443, 451 (SC) : " ....... it is not open to the Appellate Assistant Commissioner to travel outside the record, i.e., the return made by the assessee or the assessment order of the Income-tax O ..... X X X X Extracts X X X X X X X X Extracts X X X X
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