Law:

Section:

Section 251 of the Income-tax Act, 1961, read with section 2(5) of the Finance Act, 1964 - Commissioner (Appeals) - Powers of - Assessee did not claim rebate on export sales under Finance Act before Income-tax officer - However, on appeal before AAC, assessee claimed rebate and AAC allowed point to be raised and directed Income-tax officer to calculate rebate under Finance Act - Whether in view of Circular No. 14 (XI-35) of 1955 dated 11-4-1955, it was incumbent on Income-tax officer to advise assessee to claim relief if proceedings or any other particulars before him at stage of original assessment indicated that assessee was entitled to such relief under provisions of Finance Act - Held, yes - Whether since this aspect had not been considered by Tribunal in light of aforesaid circular, matter was to be sent back to Tribunal for consideration afresh - Held, yes (Matter remanded) Circulars and clarifications : Circular No. 14(XI-35) of 1955 dated 11-4-1955 FACTS In the appeal before the AAC, the assessee claimed that it was entitled to rebate at two per cent, on the export sales made during the concerned previous year. The ground relating to this claim of rebate on export sales was not raised before the Income-tax officer. The AAC, however, allowed the point to be raised and directed the Income-tax officer to gather the details regarding the quantum of exports and to work out the rebate as mentioned in section 5(1)(iii) of the Finance Act of 1964. The Tribunal held that the AAC was justified in entertaining the additional ground for allowing the rebate. On reference : HELD In view of the circular No. 14(XI-35) of 1955 dated 11-4-1955, it was clear that for the purpose of the circular, what should be the guiding factor was whether the proceedings or other particulars before the Income-tax officer at the stage of original assessment disclosed any grounds for relief under section 2(5) (a) (iii ) of the Finance Act of 1964 or of the Finance Act of 1965, even though no claim was made for that relief by the assessee at the stage of those proceedings before him. Even if there is a deviation on a point of law, so far as the circular of the Board is concerned, that…

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