Law:

Section:

Section 251 of the Income-tax Act, 1961 - Commissioner (Appeals) - Powers of - Assessment year 1961-62 - Whether where ITO had to make assessment under provisions of Indian Income-tax Act, 1922 but he wrongly made assessment under Income-tax Act, 1961, in such a situation, while disposing of appeal under 1961 Act, Commissioner (Appeals) was competent to set aside said assessment with a direction to make fresh assessment from return stage under provisions of 1922 Act - Held, yes FACTS The assessee was a co-operative society engaged in transport business. It filed a return of income on 20-10-1961, for the assessment year 1961-62. The total income shown in the return amounted to Rs. 35,815. On the 29-1-1966, the assessee filed a revised return. In this return a loss of Rs. 7,026 was shown. The ITO made the assessment under section 143(3) of the Income-tax Act, 1961. He determined the taxable income at Rs. 40,770. An appeal was preferred by the assessee to the AAC against the order of the ITO wherein it was contended that the assessment was bad in law as the same had been completed under the 1961 Act, contrary to the provisions of section 297(2)(a) of the 1961 Act. In fact, the assessment should have been made under the Income-tax Act, 1922. This contention was accepted by the Appellate Assistant Commissioner and he held that the ITO erred in completing the assessment under the provisions of the Income-tax Act of 1961. The Appellate Assistant Commissioner while acting under section 251(1)(a) of the Income-tax Act of 1961, did not annual the assessment. He instead set aside the assessment and referred the case back to the ITO to make a fresh assessment under the 1922 Act. The assessee was dissatisfied with this course inasmuch as he wanted the assessment to be annulled. He preferred an appeal to the Tribunal. The Tribunal affirmed the decision of the AAC. On reference : HELD Though the proceedings were initiated under the 1922 Act, but by reason of the revised assessment the ITO was misled into passing the order under the 1961 Act. The matter can be looked at from another point of view also. The ITO was proceeding with the assessment under the 1922 Act. He had the…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492