Law: Income Tax Act, 1922

Section: 30

Income-tax Act -(XI of 1922)---S. 30--Appeal--Appellate Assistant Commissioner is legally required to adjudicate the issue involved for the year under review and has no jurisdiction to issue direction for the preceding year---Such direction issued by the A.A.C. were ordered to tie deleted by the Tribunal. ORDER The appellant is an A.O.P. For the charge year 1976-77 income was derived from plying of buses on Lahore-Gujrat route. Original assessment was made on 22nd September, 1976 at a loss of Rs.5,310. Thereafter the Income Tax Officer issued notice under section 34 the repealed Income Tax Act. The Income Tax Officer while reprocessing the assessments determined unadjusted loss of Rs.13 or holding as under:- "The facts of the case briefly mentioned are that assess, purchased two buses bearing Nos. LEJ-1117 and LFH 9955 with total cost of Rs.183,500 in the charge year 1973-7y. Depreciation on the said vehicles was allowed at Rs.1,46,958 thereby leaving WDV at Rs.36,542 for the year next following, Both the buses referred to above were disposed off during the charge year 1975-76 for total consideration of Rs.1,01,000. The profit u/s. 10 (2) (vii) proviso 2 would thus work out to Rs.64,458 for the assessment year 1975-76 which if set off against the profits calculated above would result in balance profits of Rs.43,082. There was brought forward loss of Rs.44,388. After setting off the said loss of Rs.44,388 against profits of Rs.43,082 as calculated above there will remain unadjusted loss of Rs.1306 to be carried forward". The assessee went in appeal and the learned Appellate Assistant Commissioner maintained the action of re-opening of assessment but while dealing the assessees grievance regarding computation of loss made the following directions: "Next grievance of appeal is that while re-framing the assessment for the assessment year 1976- 77 the Income Tax Officer has also re-computed loss in the assessment year 1976-77 at Rs.1,306 against assessed loss of Rs.65,764 and as he has re-opened only one assessment order under section 34 (1) he cant re-determine loss in respect of the immediately preceding assessment year also. This contention is absolutely correct…

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