Law: Income Tax Act, 1961

Section: 254

Writ Appellate Tribunal-Jurisdiction-Question before I.T.O, and A.A.C. and also in grounds of appeal before Tribunal, whether loss was a speculative loss-Tribunal directing A,A.C. to determine whether it was capital loss or revenue loss-Whether beyond jurisdiction of Tribunal Held yes-Whether High Court can give relief by way of writ Held yes Constitution of India, Art. 226 Held, that, on the facts of the case, the controversy before the Income Tax Officer as well as the Appellate Assistant Commissioner was whether certain loss of Rs, 23,100 should be treated as speculative loss or business loss. The grounds of appeal filed before the Tribunal by the petitioner were as follows: "(1) For that on the facts and in the circumstances of the case the learned Appellate Assistant Commissioner was not justified in confirming the Income Tax Officer in treating the loss of Rs.23,100 in share account as speculative loss. (2) For that the learned Appellate Assistant Commissioner has erred on both points of law as well as fact." Therefore, the subject matter of the appeal was the controversy as to whether the loss claimed by the assessee was a loss in the nature of a speculative loss or business loss. The controversy was not whether the loss was a capital loss or revenue loss or whether the loss was liable to be taken into consideration in computation of the income of the assessee. That being the controversy, the jurisdiction and the power of the Tribunal was restricted only to deciding that controversy. The Tribunal was not entitled to and was not competent, to enlarge the controversy and decide an issue not before it. In so far as the Tribunal had, there- fore, remanded the case to the Appellate Assistant Commissioner with a direction to find whether the less was capital loss or not, the Tribunal exceeded its jurisdiction. Held also, that, as the Tribunal had clearly acted beyond its jurisdiction and this Court had entertained the writ petition by issuing the rule nisi, in the interest of justice, the petitioner in this case-the assessee-should not, in the facts and circumstances of this case, be refused relief on the ground that there was an alternative remedy under the…

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