1978 (7) TMI 167

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....sonable judgment on the claim. 2. We heard the learned departmental representative and learned counsel for the assessee. The learned departmental representative relied upon the decision of the Madras High Court in the case of CIT vs. Seth Manicklal Fomra(1) (By L. Rs.), and pointed out that the AAC has no authority to set aside the assessment partially. He submitted that the AAC ought to have remanded the case to the ITO or decide the assessee's claim on the merits of the case and he ought not have set aside the assessment. The learned counsel for the assessee on the other hand supported the orders of the AAC. 3. While dealing with the claim of the assessee company in respect of the loss said to have been incurred by the assessee comp....

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....ssessee therein was having a business in cloth at Madurai and business in sugar in Madras. For the Asst. yr. 1961-62 the ITO determined the income from the cloth business on the basis of the books of account at Rs. 8,204. In respect of sugar business the ITO estimated the income in the absence of regular books of account at Rs. 15,000. The assessee went up in appeal before the AAC against the estimate made in respect of sugar business. The AAC set aside the order of the assessment and directed the ITO to re-do the assessment in the light of observation contained in his order. In making the reassessment the ITO repeated the estimate of the income from sugar at Rs. 15,000 as was done originally. Besides he made another addition of Rs. 87,595 ....