Law: Income Tax Act, 1961

Section: 84,251(1)(a)

Indian Income Tax Act, 1961 ---Sections 84, 251(1)(a)----Appeal---Appeal to Appellate Assistant Commissioner-Scope of appeal-Claim for exemption not made before Income Tax Officer-No material on record supporting such claim---Whether can be raised before Appellate Assistant commissioner Held no-Mere fact that such claim had been allowed in subsequent year-Whether can be presumed that the prescribed condition justifying the claim had been fulfilled in the assessment under appeal---Held no. One of the grounds of appeal raised by the respondent in an apical before the Appellate Assistant Commissioner was that the Income Tax Officer had erred in not giving the respondent the benefit of section 84 of the Income Tax Act, 1961. No such claim had been made before the Income Tax Officer when he completed the assessment, nor was there material on record supporting such a claim. In subsequent years relief under section 84 had been allowed to the respondent. The appeal was dismissed by the Appellate Assistant Commissioner on the ground that the question of error on the part of the Income Tax Officer did not arise as no claim for exemption under section 84 had been made before the Officer. On further appeal, the Appellate Tribunal held that, since the entire assessment was open before the Appellate Assistant Commissioner, there was no reason for his not entertaining the claim and directed the Income Tax Officer to allow the appropriate relief. On a reference, the High court held that it was competent for the Tribunal to so hold and direct, on appeal to the Supreme Court:" Held, reversing the decision of the High Court, that, as neither was any claim made before the Income Tax Officer regarding the relief under section 84 nor was there any material on record in support thereof, Arid from the mere fact that such a claim had been allowed in subsequent years it could not be assumed that the prescribed conditions justifying a claim for exemption under section 84 were also fulfilled, the Tribunal is not competent to hold that the Appellate Assistant Commissioner should have entertained the question of relief under section 84 or to direct the Income Tax Officer to allow the…

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