TaxTMI 
TaxTMI 
1978 (8) TMI 109
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.... and house property. The income as per the return was 39,845 but the assessment was completed on an income by Rs. 50,039. The ITO assessed the business income by applying a higher rate of gross profit at 13 per cent of the total sales and on this score the addition was Rs. 5,000. There was some addition in the income from the house property and a few items of expenditure were disallowed. The assessment order is dt. 13th March, 1975. 3. The assessee preferred an appeal before the AAC challenging the addition in the trading account and disallowance of expenditure. The AAC deleted the addition of Rs. 5,000 in the trading account but confirmed the disallowance of expenditure. The order of the AAC is dt. 13th Aug., 1975. 4. On 28th Feb., 1....
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....he name of appeal or in the petition raising an additional ground. 7. Taking the last ground first, we find that the assessee was given sufficient time to represent against the proposed order and he availed of it by filing an objection and appearing through counsel. This objection has no substance. 8. On merits, after perusal of the order passed by the ITO, we clearly note that the points raised by the CIT were not at all considered by the ITO. He had passed a brief and routine order wherein he made some minor variations in the rate of gross profit and income from house property. The learned CIT undoubtedly raised questions which needed detailed examination and ITO's failure to probe into these question had resulted in an order which ....
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....Madhya Pradesh. 11. Counsel for the assessee relied on the decisions of the Bombay High Court in CIT vs. Tetaji Farasram Kharawala(2). This decision can be said to be a lending case on the issue and various decisions rendered by the various High Courts and even the Supreme Court appear to follow the principle stated therein. In CIT vs. Amrit Lal Bhogilal Co.(3) the question of merger was elaborately considered. The Lordships of the Supreme Court followed the principle in Tetaji Farasram Kharawala's(2) case but distinguished the same on facts. In Amrit Lal Bhogilal & Co.(3) the law as stated by their Lordships of the Supreme Court can be summarised as follows. It an appeal is provided against an order passed by Tribunal, the decision of t....
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....of the Commissioner under s. 263 of the IT Act. The Gujarat High Court was considering the power of the ITO to rectify his order in respect of a particular item which was not considered by him in the original assessment order which was carried before the AAC in appeal and decided. The principles which might govern the ITO's power to rectify need not be extended to the power exercisable by a Commissioner under s. 263 of the Act. The reason as explained in Tetaji Farasaram Kharawala's Case(2) is that in an appeal by the assessee against the assessment order, the Department can raise all the points relating to the computation of income and claim enhancement of such income. The decision of the Madhya Pradesh High Court in Kallooram Tirasilal vs....