Rule 27 limits a respondent to defending an assessment against enhancement, not seeking annulment of the whole order.

Rule 27 of the Appellate Tribunal Rules, 1946 allows a non-appealing respondent to support an existing assessment on any ground rejected below, even where that ground asserts the receipts are not taxable, but only within the scope of the Revenue's appeal. The respondent may resist enhancement by relying on such a defence, yet cannot use rule 27 to seek quashing, deletion, or annulment of the assessment order itself. On the facts noted, the Tribunal treated the assessee's request as an attack on the whole assessment rather than a limited defence to enhancement, and the contention was therefore disallowed.

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Issues: Whether, in the Revenue's appeal before the Tribunal against the quantum of assessed income, the assessee-respondent could rely on rule 27 of the Appellate Tribunal Rules, 1946 to contend that the receipts were not taxable at all, without seeking quashing of the assessment order.

Analysis: Rule 27 permits a respondent who has not appealed to support the Appellate Assistant Commissioner's order on grounds decided against him, but only within the scope of the appeal and only so long as he does not seek a larger or different relief in his own favour. The assessment order is treated as an indivisible order for purposes of the Revenue's appeal, yet the respondent may resist an enhancement by urging any rejected ground of defence, including a contention that no further tax can be levied, provided he merely supports the existing order and does not ask for annulment of the assessment. On the facts stated in the reference, however, the Tribunal understood the assessee's request as an attempt to attack the whole assessment and not merely to resist the department's appeal for enhancement.

Conclusion: The assessee was entitled to urge the ground that the receipts were not profits only to the extent of resisting enhancement, and not for seeking quashing of the assessment order; on the facts found, the Tribunal rightly disallowed the contention. The question was answered in the negative.

Ratio Decidendi: In an appeal confined to enhancement of assessed income, a respondent who has not appealed may support the existing assessment on any ground decided against him, but cannot use rule 27 to seek deletion or annulment of the assessment itself.

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