Revisional limits: a revisional authority cannot allow claims not pleaded before the original assessing authority; apply to the original authority.

Revisional authority cannot grant exclusion of land based on a deed of trust that was not pleaded before the original assessing authority; revisional powers do not permit effectively substituting the original authority or raising new claims. The correct remedy for claiming exemption under Section 4(b) is to apply to the original authority so the matter can be considered on merits, and time spent during the pendency of the writ petition will be excluded for limitation when a fresh application is filed. Outcome disfavors the assessee and upholds the Revenue position.

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Issues: Whether the revisional authority could allow exclusion of lands based on a deed of trust not pleaded before the original assessing authority.

Analysis: The assessment was made under Section 65 of the Income-tax Act, 1961 following a composition application and the claim for exemption based on the deed of trust was not urged before the original authority. Revisional powers are wide but do not permit the revisional authority to go beyond the case pleaded before the original authority and effectively substitute the original authority. The proper course for seeking exemption under Section 4(b) of the Income-tax Act, 1961 is to apply to the original authority so that the matter can be considered on merits; time during the pendency of the writ petition will be excluded for limitation purposes when a fresh application is filed.

Conclusion: The revisional authority cannot grant exemption based on a deed of trust not pleaded before the original authority; the decision is against the assessee and in favour of the Revenue.

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