1984 (3) TMI 52

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..... -72, the ITO added this amount of Rs. 1,65,000 as well as a sum of Rs. 9,900 which accrued as interest on this sum to the income of the assessee. The impugned addition was challenged by the assessee before the AAC who passed the following order: " The income-tax records did not suggest if the Income-tax Officer made any enquiries from the alleged diaries. Records also do not show whether the appellant was confronted with any statement of Shri HarbansLal recorded by the Income-tax Officer or seized account books of Shri Harbans Lal before making the additions cited above. It, therefore, appears that the Income-tax Officer has not made proper enquiries nor given any opportunity to the assessee before making the assessment. In the circumstan .....

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..... rs from the end of the relevant assessment year. In this connection, the learned counsel has placed reliance upon a Privy Council decision reported as CIT v. Khemchand Ramdas [1938] 6 ITR 414. Therein, an assessment was made against the assessee-firm on an income of Rs. 1,25,000 at the maximum rate. Since it was a registered firm, no super-tax was levied. Subsequently, the Commissioner cancelled the order registering the assessee as a firm and directed the ITO to take necessary action. Pursuant to this direction, the ITO assessed the firm to super-tax. In these circumstances, it was held that the earlier assessment made by the ITO had become final and it was not open to him to reopen the assessment. Apparently, the Commissioner was not conc .....

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..... h, according to him, laid down the procedure in appeal. There is no merit in this submission made by the learned counsel. Section 250(6) lays down that the order of the AAC shall state the points for determination, the decision thereon and the reasons for the decision. The order of remand is a decision given by the AAC within the meaning of this section. We are clearly of the view that it is open to the ITO to pass a fresh order of assessment within two years from the end of the financial year in which the order of remand is passed. For reasons aforementioned, we answer the second question also in favour of the Revenue and against the assessee. There will be no order as to costs.    
Case laws, Decisions, Judgements, Order .....

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