Assessee's Appeal Allowed, Assessing Authority's Order Contrary to Law. Matter Remitted for Income Determination.

The appeal filed by the assessee was allowed as the Tribunal found the assessing authority's order to be contrary to law. The Tribunal set aside the assessing authority's order and vacated the Commissioner of Income-tax(Appeals) order, remitting the matter back to the Assessing Officer to determine the income at &8377; 16,12,679 as per the Commissioner of Income-tax(Appeals) determination.

---

---

Issues:
1. Enhancement of assessment without proper direction from the Tribunal.
2. Determination of total income and profit rate.
3. Jurisdiction of Assessing Officer in reworking income beyond Tribunal's direction.

Issue 1: Enhancement of assessment without proper direction from the Tribunal
The appeal was filed by the assessee against the order of the Commissioner of Income-tax(Appeals) confirming the order passed by the assessing officer under section 143(3) read with section 254. The assessee contended that the lower authorities enhanced the assessment without any specific direction from the Income-tax Appellate Tribunal. The Tribunal had remitted a particular issue to the assessing officer for consideration, but it did not direct the enhancement of the assessment or alteration of the income determined by the Commissioner of Income-tax(Appeals).

Issue 2: Determination of total income and profit rate
The assessee, engaged in the business of builder and developer, had the original assessment completed at 8% of total contract receipts. Upon reassessment, the income was determined at &8377; 28,11,700 by adopting a profit rate of 20% of the gross profit. The Commissioner of Income-tax(Appeals) modified the income to &8377; 16,12,679, which the assessee accepted. However, the Assessing Officer reworked the income to &8377; 32,69,228, justifying an estimation of profit at 12%, which was upheld by the Commissioner of Income-tax(Appeals). The Tribunal found the Assessing Officer erred in exceeding the jurisdiction granted by re-determining the income beyond the Tribunal's direction.

Issue 3: Jurisdiction of Assessing Officer in reworking income beyond Tribunal's direction
The Tribunal directed the Assessing Officer to examine the single issue of the purchase cost of &8377; 20 lakhs for land. The Assessing Officer accepted the contention of the assessee regarding the land purchase cost. However, the Assessing Officer exceeded his jurisdiction by reworking the profit and determining the income at &8377; 32,69,228, which was contrary to law. The Tribunal set aside the assessing authority's order and vacated the Commissioner of Income-tax(Appeals) order, remitting the matter back to the Assessing Officer to determine the income at &8377; 16,12,679 as per the Commissioner of Income-tax(Appeals) determination.

In conclusion, the appeal filed by the assessee was allowed, and the Tribunal found the assessing authority's order to be contrary to law, setting it aside and remitting the matter back for proper determination of income as directed by the Tribunal.

---