TMI Blog1967 (7) TMI 10X X X X Extracts X X X X X X X X Extracts X X X X ..... od 1st July, 1956, to 30th June, 1957. The assessee was a registered firm consisting of several partners of whom one Dinshaw was a non-resident partner. While assessing the assessee under section 23(5)(a), the Income-tax Officer, therefore, under the second proviso to that section assessed Dinshaw's share of the income on the assessee at the rate which would be applicable if it were assessed on him personally and directed that the sum so determined as payable shall be paid by the assessee. The assessee appealed against the assessment order to the Appellate Assistant Commissioner and one of the contentions urged by him in support of the appeal was that the assessment of Dinshaw's share of the income on the assessee under the second proviso t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion for the determination of the court : " Whether, on the facts and in the circumstances of the case, the Tribunal having set aside the assessment was justified in directing the Income-tax Officer to reassess the share income of the non-resident after due notice to the assessee firm as representing the non-resident partner ? " The determination of the question depends on the true interpretation of section 33, sub-section (4), which deals with the power of the Tribunal to make orders on the appeal preferred to it. This sub-section provides that the Appellate Tribunal may, after giving both parties to the appeal an opportunity of being heard, pass such orders thereon as it thinks fit, and shall communicate any such orders to the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r to make a fresh assessment on the assessee. This view is incontrovertible on a plain reading of sub-sections (4) and (5) of section 33 and it has also received the imprimatur of the highest court in the land in Hukumchand Mills Ltd. v. Commissioner of Income-tax. The Supreme Court in that case held that the powers of the Tribunal in dealing with appeals are expressed in section 33(4) in the widest possible terms and the words " pass such orders as the Tribunal thinks fit " include all the powers (except possibly the power of enhancement) which are conferred on the Appellate Assistant Commissioner by section 31 and consequently, the Tribunal has authority under section 33(4) to direct the Appellate Assistant Commissioner or the Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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