TMI Blog1989 (10) TMI 3X X X X Extracts X X X X X X X X Extracts X X X X ..... justified in not entertaining and adjudicating upon the additional ground raised on behalf of the assessee-company? (2) Whether, on the facts and in the circumstances of the case, the term 'profit' occurring in rule 19(5) of the Income-tax Rules, 1962, was rightly taken by the Tribunal to signify profit as per profit and loss account of the assessee and such profit without add back of depreciation ? " This reference relates to the assessment year 1963-64. The appellant, Jaipur Udyog Limited (hereinafter referred to as the " assessee "), is a public limited 'company carrying on the business of manufacturing cement at Sawaimadhopur. The assessee claimed deduction under section 84 of the Act in respect of the fourth cement plant set up b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nder section 143(3), and, therefore, it cannot be the subject-matter of an appeal to the Appellate Assistant Commissioner. The Tribunal was of the view that the additional ground sought to be raised by the assessee with regard to the maintainability of the appeal before the Appellate Assistant Commissioner seeks to nullify the gain of the Revenue and at the same time, seeks to protect its own gain erroneously granted to it by the Income-tax Officer. In this context, the Tribunal has observed that, before the Appellate Assistant Commissioner, it was submitted on behalf of the assessee that the consequential order passed by the Income-tax Officer was a mini assessment order giving effect to the findings of the Tribunal and the same was, there ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sense and, in that view of the matter, the Tribunal held that the authorities below were right in adopting the profit as per profit and loss account of the assessee without adding back depreciation for the purpose of determining the average profit in terms of rule 19(5). Thereupon the assessee moved the Tribunal for referring the questions of law arising out of the order of Tribunal for consideration of this court and the Tribunal has referred the questions mentioned above for the consideration of this court. Nobody has appeared on behalf of the assessee. We have heard Mr. V. K. Singhal, learned counsel for the Revenue. With regard to question No. 1, we find from the record that the assessee had gone in appeal before the Appellate Ass ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the present one where party invites the Tribunal to entertain the appeal and seeks to challenge the order when it goes against it. The assessee having invited the Appellate Assistant Commissioner to entertain the appeal against the order of the Income-tax Officer cannot be permitted to assail the order passed by the Appellate Assistant Commissioner on the said appeal on the ground that the Appellate Assistant Commissioner had no jurisdiction to entertain the appeal. We are, therefore, in agreement with the view of the Tribunal and question No. 1 must be answered in the affirmative, i.e., against the assessee and in favour of Revenue. As regards question No. 2, it may be mentioned that this question arose in the context of deduction claim ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is not related to the business profits and that it is related to the taxable profits. In other words, the said decision of the Supreme Court shows that, for the purpose of section 15C of the old Act, the term " profit " means taxable profit, viz., the profit as arrived at after making deductions permissible tinder the provisions of the old Act. The scheme of section 84 of the Act is similar to that of section 15C of the old Act and, therefore, the term "profit" in section 84 should be construed in the same sense to mean taxable profit. Rule 19 seeks to give effect to the provisions of section 84 of the Act and the term "Profit" under rule 19(5), therefore, must have the same meaning as that expression had in section 84 of the Act. In our op ..... X X X X Extracts X X X X X X X X Extracts X X X X
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