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TMI Blog1971 (2) TMI 36X X X X Extracts X X X X X X X X Extracts X X X X ..... r to make a fresh assessment from the return stage under the provisions of the Indian Income-tax Act, 1922 ? " On facts there is not much dispute. The assessee is a co-operative society. It is engaged in transport business. It filed a return of income on October 20, 1961, for the assessment year 1961-62. The total income shown in the return amounted to Rs. 35,815. On the 29th of January, 1966, the assessee filed a revised return. In this return, a loss of Rs. 7,026 was shown. The Income-tax Officer made the assessment under section 143(3) of the Income-tax Act, 1961. He determined the taxable income at Rs. 40,770. An appeal was preferred by the assessee to the Appellate Assistant Commissioner of Income-tax against the order of the Income-t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e that he adopted in the present case : " 251. (1) In disposing of an appeal, the Appellate Assistant Commissioner shall have the following powers- (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment ; or he may set aside the assessment and refer the case back to the Income-tax Officer for making a fresh assessment in accordance with the directions given by the Appellate Assistant Commissioner and after making such further inquiry as may be necessary, and the Income-tax Officer shall thereupon proceed to make such fresh assessment and determine, where necessary, the amount of tax payable on the basis of such fresh assessment. " It will also be of interest to note that the Income-tax Of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ian Income-tax Act, 1922." It will be, therefore, apparent that though the proceedings were initiated under the 1922 Act, but by reason of the revised assessment the Income-tax Officer was misled into passing the order under the 1961 Act. The matter can be looked at from another point of view also. The Income-tax Officer was proceeding with the assessment under the 1922 Act. He had the jurisdiction to do so and the mere fact that he applied a different provision of law would not render his order wholly without jurisdiction. It is like a case where a duly constituted Tribunal applies a wrong provision of law. In this situation, it cannot be said that the order of that Tribunal becomes wholly void. If any authority is needed for the proposi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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