Law:

Section:

Section 251(1)(a) of the Income-tax Act, 1961 - Appellate Assistant Commissioner/Commissioner (Appeals) - Powers of - Whether where AAC had set aside original assessment order and directed ITO to make fresh assessment of assessee without any limitation or restrictions, ITO could exercise all powers which he could otherwise exercise at time of making original assessment - Held, yes Facts For the relevant assessment year, the ITO completed the assessment of the assessee-firm which was carrying on, inter alia, the business of crushing oil. On appeal the AAC, however, set aside the ITO's order and directed the ITO to reframe the assessment after examining the various factors involved in detail. In pursuance of the AAC's order, the ITO made a fresh assessment on the assessee in which he made certain additions in respect of groundnut oil account, tilli account and alsi account, though at the time of the original assessment he had made addition only with regard to the groundnut oil account. On appeal against that order, the AAC held that the ITO could not go beyond the directions as given in the original assessment order and enquire into other matters adversely against the assessee. He, therefore, deleted the additions made by the ITO in the accounts of tilli and alsi. On the revenue's appeal, the Tribunal, however, held that the AAC was not right in holding that the ITO could not make any addition in the tilli and alsi accounts simply because he made no such addition at the time of framing the original assessment order. On reference: Held In the instant case, it was clear from the order of the AAC by which the original assessment order of the ITO was set aside and the case was sent back to the ITO for reframing the assessment order after examining the various factors involved in detail and giving an opportunity to the assessee before the additions were made, that it was an order of remand without any limitation or restrictions. Therefore, as the case was sent back to the ITO without any restrictions, the ITO could exercise all powers which he could otherwise exercise at the time of making the original assessment. Accordingly, the Tribunal was justified in holding…

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