Law:

Section:

Section 254 of the Income-tax Act, 1961 - Appellate Tribunal - Orders of - Assessment year 1975-76 - AAC partly disallowed exemption of an amount claimed by assessee - Assessee did not prefer appeal and departmental appeal against AAC's order was dismissed - Assessee also did not file cross-objection during appeal by department - Whether Tribunal had power to allow full claim of exemption to assessee, on department's appeal, when assessee had preferred neither appeal nor cross-objection - Held, no FACTS In the assessment for the assessment year 1975-76, the assessee, a co-operative society, claimed exemption of a sum said to have been spent in construction of a school building. This expenditure was asserted to be towards labour welfare expenses. The ITO disallowed the assessee's claim. The AAC, on appeal, partially allowed the assessee's claim. The assessee remained satisfied with the appellate order did not prefer any appeal. The revenue was not satisfied with the finding of the AAC and preferred an appeal before the Tribunal. Even after the receipt of notice, no cross-objection was filed by the assessee in respect of that part of the amount which was rejected. The Tribunal dismissed the departmental appeal. Thereafter, the assessee had the case referred to the High Court on an application under section 256(2). HELD When the assessee had not preferred any appeal or cross-objection, there was no scope for the Tribunal to disturb the finding of the AAC against the assessee which had become final. The Tribunal is a creature of the statute. It is to exercise that much of power which is provided under the statute and can exercise powers ancillary to the power vested. It has no wide power to grant relief where appeal or cross-objection is not preferred since the same is not ancillary to the main power. Therefore, the Tribunal was right in not allowing the assessee's claim for deduction of the entire amount when the assessee did not file any appeal or cross-objection against the AAC's order partly disallowing its claim. A.K. Ray for the Petitioner. S.C. Ray for the Respondent. JUDGMENT S.C. Mohapatra, J. - This is a reference under section 256(2) of the Income-tax…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492