Tribunal powers and limitation under the old Income-tax Act cannot revive a time-barred assessment or confer fresh jurisdiction.

Where a return filed before 31 March 1962 was required to be assessed under the Indian Income-tax Act, 1922 by virtue of section 297(2)(a) of the Income-tax Act, 1961, the Tribunal could not restore the matter for a fresh assessment once the limitation period under section 34(3) of the 1922 Act had expired. Its appellate power under section 33(4) was wide but remained confined to the subject-matter of the appeal and could not be used to confer jurisdiction on the Income-tax Officer or override the statutory bar of limitation. A direction to reassess could not revive an assessment treated as non est and time-barred.

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Issues: Whether, after holding an assessment made under section 143(3) of the Income-tax Act, 1961 invalid, the Tribunal could restore the case to the Income-tax Officer and direct a fresh assessment from the return stage under the Indian Income-tax Act, 1922 despite the expiry of the limitation period.

Analysis: The return had been filed before 31 March 1962, so the assessment had to be completed under the old Act by virtue of section 297(2)(a) of the Income-tax Act, 1961. Under section 34(3) of the Indian Income-tax Act, 1922, the assessment period had already expired when the Tribunal made its order. The Tribunal's power under section 33(4) was wide, but it remained confined to the subject-matter of the appeal and could not be used to confer jurisdiction on the Income-tax Officer or to override the statutory bar of limitation. A direction to proceed afresh could not validate an assessment that was treated as non est and time-barred.

Conclusion: The Tribunal had no power to direct a fresh assessment after limitation had expired, and the question was answered in favour of the assessee.

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