Law:

Section:

Section 251 of the Income-tax Act, 1961 - Commissioner (Appeals) - Powers of - Assessment year 1980-81 - ITO estimated petitioner/assessee's income from medical profession - He did not include income from a nursing home but in a note appended to assessment order signed by him, he mentioned, after considering assessee's reply to a notice issued by him, that it was difficult to hold that income of nursing home really belonged to assessee as an individual - AAC issued an enhancement notice under section 251(1)(a) to show cause why income from nursing home be not included in her individual income - Whether note appended to assessment order, formed part of assessment order - Held, yes - Whether, therefore, AAC clearly had authority under section 251(1)(a) to go into question of including income from nursing home in assessee's income and notice issued by him could not be quashed - Held, yes FACTS The assessee was a medical practitioner. For the assessment year in question, the ITO estimated the assessee's income from the medical profession at Rs. 30,000 as against Rs. 24,000 declared in the return by the assessee. In the appeal, the AAC issued a notice to the assessee under section 251(1)(a) to show cause why the income nursing home be not included in her individual income. On writ petition, the assessee contended that the AAC had acted in excess of jurisdiction in issuing the impugned notice which amounted to travelling outside the record with a view to finding out a new source of income not disclosed either in the assessee's return or the assessment order. HELD The record showed that the assessee was required by the ITO to explain why the income arising from the nursing home be not treated as her individual income. In her reply, she stated that the income arising from nursing home could not be treated as her income as an individual. Thereafter, the ITO, in a note appended to the end order of assessment mentioned that it was difficult to hold that the income of the nursing home really belonged to the assessee as an individual. This note was duly signed by the ITO. The contention of the assessee that the note appearing it the end of the original order of assessment…

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