Appellate enhancement power cannot add a new income source never assessed by the Income-tax Officer.

An appellate authority's enhancement power is confined to matters actually considered and determined in the original assessment, and it cannot be used to bring to tax a new specific source or item of income never examined by the Income-tax Officer. The distinction between a general head of income and a particular source or item is material: where the omitted Rs. 40,000 had not been subjected to assessment, it could not be added in enhancement proceedings. The enhancement was therefore without jurisdiction, and the assessee succeeded.

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Issues: Whether the Appellate Assistant Commissioner had power under the appellate provisions to enhance the assessee's assessment by bringing to tax a sum of Rs. 40,000 which had not been considered by the Income-tax Officer.

Analysis: The power of the Appellate Assistant Commissioner extends to matters considered and determined by the Income-tax Officer in the course of assessment, but not to a new specific source or item of income never subjected to the process of assessment. The distinction is between the head of income and the particular source or item. Since the Income-tax Officer had not considered the Rs. 40,000 in the relevant assessment year, the appellate authority could not treat it as an item capable of being added in enhancement proceedings. The proper remedies for omitted income lay elsewhere under the assessment and revisional provisions.

Conclusion: The enhancement was without jurisdiction and the answer was in favour of the assessee.

Ratio Decidendi: An appellate authority may revise only matters actually considered and determined in assessment, and cannot enhance an assessment by bringing in a new specific source of income never subjected to assessment by the Income-tax Officer.

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