TMI Blog1981 (3) TMI 46X X X X Extracts X X X X X X X X Extracts X X X X ..... tion at Rs. 69,402. He explained that he had borrowed Rs. 7,000 from the Life Insurance Corporation of India and invested in the construction. The ITO accepted the explanation and completed the assessment at a total income of Rs. 22,470. In doing so, the ITO included some income from the self-occupied portion (SOP). The assessee, in appeal, argued that the ITO was not justified in estimating the annual letting value (ALV) of self-occupied portion (SOP). The AAC accepted the contention, set aside the assessment and directed the ITO to apply his mind afresh to the problem and reprocess the whole matter after giving sufficient opportunity to the assessee and pass a fresh assessment order according to law. Meanwhile, the ITO received some compl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessment was set aside as a whole and, therefore, the ITO's powers for a fresh assessment were not limited. It also took the view that otherwise also the ITO had the jurisdiction to reopen the assessment on his being of the opinion that some income had escaped assessment, because the earlier assessment was set aside on May 8, 1974. On these facts as already stated, at the instance of the assessee, the Tribunal has referred the following question as a question of law for answer to this court: " Whether, on the facts and in the circumstances of the case, the Tribunal was justified in confirming the change in the cost of construction of the house when the Income-tax Officer had accepted the cost on the basis of the authorised valuer' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... is the correct interpretation of the order of the AAC in the context of the appeal of the assessee and the grievance therein. His argument was that in view of this interpretation of the order of the AAC, the ITO had a limited question for determination before it, that is, of ALV of SOP, he had no jurisdiction to travel beyond that and determine afresh the amount of investment in property, as if the whole matter was at large before him. The learned counsel for the assessee relied on the decision of the Andhra Pradesh High Court in P. Subbarao and Co. v. AAC [1959] 35 ITR 673 and of the Bombay High Court in CIT v. Indo-Aden Salt Works Co. [1959] 36 ITR 429. The learned counsel for the department in his argument in counter contended that ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... resh to the problem and process the whole matter after giving sufficient opportunity to the appellant and frame an assessment order in accordance with law." The expression " the assessment order is set aside " is followed by the expression "and process the whole matter ... and frame an assessment order in accordance with law ". Thus, the order of the AAC, in unequivocal terms without leaving any ray of doubt, makes it transparently clear that the order of assessment of the ITO was set aside and the whole matter, without any limitation, was at large before the ITO. In short as a sequel to the order of the AAC, the assessment order of the ITO dated February, 28, 1974 (annex. A) was non est. In the decisions in Pulipati Subbarao's case [19 ..... X X X X Extracts X X X X X X X X Extracts X X X X
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