Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Powers of - Assessment year 1962-63 - Whether Tribunal has power of remanding case to AAC or Income-tax Officer, requiring him to hold further enquiry and to dispose of case on basis of such enquiry - Held, yes - Whether, however, said jurisdiction of Tribunal is confined only to subject matter of appeal - Held, yes - Income-tax Officer and AAC held that loss in share transaction was speculative loss - Tribunal held that loss was not speculative and remanded matter to AAC, to decide whether loss was capital loss or revenue loss - Whether, since in appeal before Tribunal, question whether loss was capital loss was neither included in grounds taken originally nor permitted to be taken subsequently, by Tribunal, Tribunal exceeded its jurisdiction in requiring AAC to decide question whether loss was capital loss or revenue loss - Held, yes - Whether, therefore, said part of Tribunal's order was liable to be set aside - Held, yes FACTS In his return the assessee had shown loss in share transactions. The Income-tax Officer held that the transaction in question was of a speculative nature, and, the assessee was accordingly not entitled to set off, the said loss against any income other than speculative income. The AAC affirmed the order of the Income-tax Officer. On further appeal, the Tribunal held that the transaction in question could not be termed as a speculative transaction and the departmental authorities were not justified in treating the said loss as a speculative loss. In this view of the matter, the Tribunal sent the case on remand to the AAC, requiring him to decide whether the loss in question was a capital loss or a trade loss in the hands of the assessee. The assessee filed, writ petition on the ground that the Tribunal, exceeded its jurisdiction in sending the matter on remand and requiring the AAC to decide whether the loss in question was a capital loss or a trade loss, for, such a question was not within the scope of the appeal before the Tribunal. The Single Judge held that the Tribunal clearly acted beyond its jurisdiction and that the petitioner assessee before him, i.e., the present…

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