Law: Income Tax Act, 1961

Section: 143,254

Income-tax-----Assessment---Appeal to Appellate Tribunal---Tribunal setting aside order of assessment and directing a fresh assessment---Assessing Officer on making fresh assessment can make additions which were not made in earlier assessment---Indian Income Tax Act, 1961, Ss. 143 & 254. Where the Tribunal has given an order for making a fresh assessment it is open to the Assessing Officer to add in making fresh assessment, income, which had escaped assessment in the original assessment. However, it must be done in accordance with law. Assam Cooperative Apex Bank Ltd. v. CIT (1978) 112 ITR 257 (Gauhati); Muhammad Ahsan Wani v. CIT (1977) 106 ITR 84 (J & K) and Pathikonda Balasubba Setty v. CIT (1967) 65 ITR 252 (Mys.) ref. JUDGMENT D.N. BARUAH, J.---At the instance of the Revenue, the following two questions have been referred under section 256(1) of the Income Tax Act, 1961 (for short, "the Act"), for opinion of this Court: "(1) Whether, on the facts and in the circumstances of the case, when the Tribunal had set aside the order of the Assessing Officer for completion of the assessment de novo, the Assessing Officer while making fresh order is precluded from assessing income which has escaped assessment in the original assessment. If so, whether the Tribunal was legally correct in upholding the Commissioner of Income-tax (Appeals) order deleting the addition of Rs.8,96,713 made on account o: non-disclosure of total contract receipt by the assessee ? (2) Whether in view of question No. l above, the Tribunal was legally correct in upholding the Commissioner of Income-tax (Appeals) order deleting the addition of Rs.50,310 made on account of undisclosed interest?" The assessee is a company incorporated under the Companies Act. The Assessing Officer made assessment in respect of the assessment year 1975-76. The assessee, not being satisfied with the order of assessment made by the Assessing Officer, preferred an appeal before the Commissioner of Income-tax (Appeals), and, ultimately, the matter came before the Income tax Appellate Tribunal. The Tribunal after hearing the matter remanded the same to the Assessing Officer to make de novo assessment. The…

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