Appellate jurisdiction cannot exceed the grounds of appeal; fresh examination of unchallenged deductions was impermissible.

Under the Haryana General Sales Tax Act, 1973, the appellate authority's power under section 39 is confined to the appeal actually filed and the issues raised by the appellant. Although it may pass such order as it deems just and proper and may enhance liability within that appeal, it cannot, in the absence of a departmental appeal or revision, reopen matters that had become final in the assessee's favour or direct fresh examination of deductions not questioned in appeal. The court held that the appellate authority had no jurisdiction to travel beyond the grounds of appeal, and the referred question was answered in the negative.

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Issues: Whether, on an appeal filed by the assessee, the appellate authority under the Haryana General Sales Tax Act, 1973 could travel beyond the grounds of appeal and direct fresh examination of issues not raised by the appellant without resort to revision under section 40 of the Act.

Analysis: Section 39 confers appellate power to pass such order as the authority deems just and proper, including enhancement, but that power operates within the appeal actually presented and the issues raised therein. The appellate authority is entitled to adjudicate the grievances urged by the appellant, but it cannot, in the absence of an appeal or revision by the Department, reopen matters that had become final in favour of the assessee and were not put in issue before it. The scheme of appeal and revision, read in the light of the settled principle that a party who has not appealed is deemed to have accepted the adverse part of the order, does not permit the appellate authority to initiate new issues on its own motion in an assessee's appeal.

Conclusion: The appellate authority had no jurisdiction to go into issues not raised in appeal or to direct fresh examination of deductions allowed by the Assessing Authority; the answer to the referred question was in the negative.

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