Remand for fresh assessment permits reconsideration of record and lawful additions unless appellate directions expressly restrict that power.

On a remand for fresh assessment, the Income-tax Officer retained the powers of the original assessment, subject to the appellate directions under section 31(3)(b) of the Indian Income-tax Act, 1922. Because the remand required a fresh assessment after examining specified witnesses and did not confine the officer to a mere arithmetical recomputation, he could re-examine the assessment record and consider deposits already on record for their true character. The High Court held that the officer was entitled to treat the additional deposits as income of the assessee-firm, and the question was answered in the affirmative against the assessee.

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Issues: Whether, after an appellate order setting aside an assessment and directing a fresh assessment after examining specified witnesses, the Income-tax Officer was empowered to treat additional deposits already on record as income of the assessee-firm.

Analysis: Under section 31(3)(b) of the Indian Income-tax Act, 1922, when the Appellate Assistant Commissioner sets aside an assessment and directs a fresh assessment, the Income-tax Officer must comply with the specific directions in the remand order, but subject to those directions he retains the same powers as in the original assessment under section 23 of the Act. The remand in the present case required a fresh assessment after examining the ladies and did not confine the officer merely to a recalculation of figures. The deposits in question were already part of the record, and the second Income-tax Officer was therefore entitled to consider their true character while making the substituted assessment.

Conclusion: The Income-tax Officer had jurisdiction to include the other deposits as income of the firm, and the question was answered in the affirmative, against the assessee.

Ratio Decidendi: On a general remand for fresh assessment, the Income-tax Officer may re-examine the entire assessment record and make any lawful additions within the scope of the remand directions, unless the appellate order expressly restricts that power.

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