Appellate Assistant Commissioner lacked jurisdiction to admit belated ground on suppressed sales; partner's statement binds assessee, appeal invalidated

HC held the Appellate Assistant Commissioner lacked jurisdiction to entertain the belated ground challenging an addition for alleged suppressed sales where the assessee had not sought rectification from the Income-tax Officer and the original grounds of appeal did not raise the issue. The partner's contemporaneous statement bound the assessee; absent a claim that the statement was wrongly recorded or made under a mistaken belief and without a rectification application, no competent appeal lay. The Tribunal's decision for the Revenue was affirmed.

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Issues involved:
Jurisdiction of the Appellate Assistant Commissioner to consider appeal against addition of Rs. 18,052 relating to alleged suppressed sales of sarki.

Summary:

Jurisdiction of Appellate Assistant Commissioner:
The High Court considered a reference u/s 256(1) of the Income-tax Act, 1961, regarding the jurisdiction of the Appellate Assistant Commissioner to entertain an appeal against the addition of Rs. 18,052 for suppressed sales of sarki. The assessee, involved in trading oilseeds, initially accepted the discrepancy but later appealed the addition. The Income-tax Officer's order was based on the partner's acceptance of the discrepancy. The Appellate Assistant Commissioner deleted the addition, leading to an appeal by the Revenue to the Income-tax Appellate Tribunal. The Tribunal, following precedent, held that the Appellate Assistant Commissioner erred in entertaining the appeal and deleting the addition. The High Court upheld the Tribunal's decision, emphasizing that if a statement is voluntarily accepted, no appeal can be made against it. The Court also referenced a similar case from the Punjab and Haryana High Court, highlighting the necessity for rectification before appealing against a statement made to tax authorities. Ultimately, the Court ruled in favor of the Revenue, stating that until rectification is made, an appeal is not competent.

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