TMI Blog1999 (8) TMI 8X X X X Extracts X X X X X X X X Extracts X X X X ..... ements to be met when certificates in Forms Nos. 10C and 10D had been filed before him instead of the same having been filed along with the return as required in sub-section (5) of section 80HH of the Act ?" With a view to properly understand the whole gamut of this case, it is necessary to notice the legal provisions applicable to this case as well as the facts thereof. Under section 80HH of the Income-tax Act, certain deductions in respect of profits and gains from newly established industrial undertakings or hotel business in backward areas are allowed. The extent of such deductions while computing the total income of the assessee, from such profits and gains is an amount equal to 25 per cent. thereof allowed to such assessee. With a v ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... red as Appeal No. 1/CWJMU/79-80. Vide order dated January 31, 1981, this appeal was disposed of. The matter relating to a case stated by the Tribunal for the opinion of this court under section 256(1) of the Act is dealt with in paragraph 4 of the Commissioner of Income-tax (Appeals)' order. While partly allowing the appeal, the contention raised with reference to sections 80J and 80HH on behalf of the respondent-firm was rejected and the assessment framed by the Income-tax Officer was upheld on this aspect of the case. This order was passed by the Commissioner of Income-tax (Appeals) in exercise of powers vested in it under section 250 of the Income-tax Act. Feeling aggrieved and dissatisfied with the order of the Commissioner of Income- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rtificate having been furnished along with return of income, the appellate authority was powerless and helpless. In this behalf, the provision of section 251 of the Income-tax Act needs to be noted : "251. (1) In disposing of an appeal, the Commissioner (Appeals) 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 Assessing Officer for making a fresh assessment in accordance with the directions given by the Commissioner (Appeals) and after making such further inquiry as may be necessary, and the Assessing Officer shall thereupon proceed to make such fresh assessment and determine, whe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ing, reducing, or enhancing, it is implicit that in either of these situations he will have to examine the case and it is only thereafter that one of such eventualities may arise. It may also be worthwhile to notice here that taxation appeals cannot be put at par with civil appeals under the Code of Civil Procedure. There it is the adjudication of claims of two parties which is known as the adversary system. This is not the situation in tax appeals because in such appeals the revenue authority concerned is not as an adversary or opponent in the sense of the term like in civil cases. The whole purpose of the revenue authority being arrayed as an opponent is one to ensure that the assessment is made as per requirements of law irrespective of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, plenary powers in disposing of an appeal. The scope of his power is conterminous with that of the Income-tax Officer. He can do what the Income-tax Officer can do and also direct him to do what he has failed to do. If the Income-tax Officer has the option to assess one or other of the entities in the alternative, the Appellate Assistant Commissioner can direct him to do what he should have done in the circumstances of a case." In relation to the powers of the appellate authority under the Central Sales Tax Act to entertain "C" Form, which were required to be furnished at the time of assessment by the assessing authority on sufficient cause being shown, the Supreme Court took an almost identical view in the case reported in State of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... process. The appellate authority can itself enter the arena of assessment, either by pursuing further investigation or causing further investigation to be done. It can do so on its own initiative, without being prodded by any of the parties. It can enhance the assessment, taking advantage of the opportunity afforded by the taxpayer's appeal, even though the appeal itself has been mooted only with a view to a reduction in the assessment. These are special and exceptional attributes of the jurisdiction of a tax appellate authority. These attributes underline the truth that the appellate authority is no different, functionally and substantially, from the assessing authority itself." To similar effect is the decision of the said court reporte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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