TMI Blog1987 (8) TMI 41X X X X Extracts X X X X X X X X Extracts X X X X ..... , after the original assessment has been set aside, the Income-tax Officer cannot rope in new sources of income ? (2) Whether, on the facts and in the circumstances of the case, the Tribunal was correct in law in holding that no perquisite for the user of the car of the company for private purposes accrued to him ? " The material facts giving rise to this reference, briefly, are as follows : The assessee is assessed in the status of an individual. For the assessment year 1973-74, the assessee filed a return declaring a total income of Rs. 14,840. The Income-tax Officer, however, computed the total income at Rs. 2,69,515 and passed an order of, assessment accordingly. Aggrieved by that order, the assessee preferred an appeal before the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that apart from the additions made to the total income of the assessee, which were objected to by the assessee before the Appellate Assistant Commissioner, certain deposits in the names of certain persons were made by the assessee and that the said deposits represented the income of the assessee from undisclosed sources. The Income-tax Officer accordingly held that a sum of Rs. 1,64,250 was the income of the assessee from undisclosed sources. The Income-tax Officer also added the value of the perquisite in respect of the use of car. The Income-tax Officer accordingly completed the assessment on total income of Rs. 2,65,760. Aggrieved by that order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals). It was co ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was not justified. Aggrieved by the order passed by the Tribunal, the Revenue sought a reference and it is at the instance of the Revenue that the aforesaid questions of law have been referred to this court for its opinion. Learned counsel for the Revenue contended that once the matter was remanded to the Income-tax Officer for making a fresh assessment, it was open to the Income-tax Officer to consider the entire matter afresh and make new additions based on new sources of income. Reliance was placed on the decision in CIT v. Seth Manicklal Fomra [1975] 99 ITR 470 (Mad). In reply, it was contended on behalf of the assessee that the power of the Income-tax Officer was confined to the old sources of income which were the subject-matter of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner cannot, while setting aside the assessment, empower the Income-tax Officer to go into points which he himself could not have investigated in exercise of his power of enhancement. Now, if the Appellate Assistant Commissioner could not have empowered the Income-tax Officer to assess a source of income not processed by the Income-tax Officer in the original order of assessment and not disclosed either in the return or in the assessment order, it is difficult to appreciate as to how the Income-tax Officer could assume jurisdiction to tax that new source of income while making a fresh assessment in pursuance of an order of remand by the Appellate Assistant Commissioner. In Kartar Singh v. CIT [1978] 111 ITR 184 (P H), Chinnappa Re ..... X X X X Extracts X X X X X X X X Extracts X X X X
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