https://www.taxtmi.com/caselaws?id=177285 Appellate enhancement under section 31(3) of the Income-tax Act, 1922 is confined to the source of income actually considered by the Income-tax Officer and cannot introduce a new and distinct source of income. Here, the Income-tax Officer had examined the assessee's connection with the company and its profits, but taxed the matter on the basis that the company was a benamidar and that current profits were business income. The Appellate Assistant Commissioner sought instead to assess outstanding loans as deemed dividend under sections 2(6A)(e) and 12(1B), which was a different legal basis and source. The enhancement was therefore not competent, and the issue was decided in favour of the assessee. en-us Fri, 16 Oct 1964 00:00:00 +0530 Wed, 06 Jan 2016 16:04:06 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=177285 Appellate enhancement under section 31(3) of the Income-tax Act, 1922 is confined to the source of income actually considered by the Income-tax Officer and cannot introduce a new and distinct source of income. Here, the Income-tax Officer had examined the assessee's connection with the company and its profits, but taxed the matter on the basis that the company was a benamidar and that current profits were business income. The Appellate Assistant Commissioner sought instead to assess outstanding loans as deemed dividend under sections 2(6A)(e) and 12(1B), which was a different legal basis and source. The enhancement was therefore not competent, and the issue was decided in favour of the assessee. Case-Laws Income Tax Fri, 16 Oct 1964 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=177285