TaxTMI 
TaxTMI 
1995 (1) TMI 45
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....ner of Income-tax (Appeals) that the provisions of section 52(2) of the Income-tax Act, 1961, could not be invoked in this case and in deleting the addition made on this account ? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in upholding the order of the Commissioner of Income-tax (Appeals), deleting the addition of Rs. 4,29,593 made by the Income-tax Officer on account of profit on the amalgamation of the companies, Eastern Trading Syndicate, Jaipur, and Shree Vijay Laxmi Trading Ltd., Pali, Marwar, with the assessee company ? " The brief facts of the case are that the assessment of the assessee in respect of the period ending on December 31, 1971, was completed by the Income-tax Officer u....
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....ut of amalgamation is liable to tax. The present controversy is only with regard to this addition which was made by the Income-tax Officer on the directions being given by the Inspecting Assistant Commissioner as to whether the Inspecting Assistant Commissioner could have given such a direction under section 144A in respect of a source of income which was considered by him as exempt and not liable to tax in the original assessment order and for which no appeal was filed by the assessee and the directions by the appellate authority were only in respect of the capital gains and income from rent. Mr. Bafna has relied on the decision of this court in the case of Rambilas Chandram v. CIT [1985] 156 ITR 344 wherein it was observed that where a....
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.... is bound by those directions. The decision of the Allahabad High Court in the case of Cawnpore Chemical Works Pvt. Ltd. (No. 1) v. CIT [1992] 197 ITR 296, has also been relied on to show that where the order of the Appellate Assistant Commissioner is specific, it is not open to the Income-tax Officer to conduct a fresh enquiry beyond the said directions and to proceed to make a fresh assessment without any reference to the earlier assessment. The decision in the case of CIT v. Kamla Town Trust [1992] 198 ITR 191 (All), has been relied on for the proposition that even if an erroneous decision is given it operates as res judicata between the parties and the Income-tax Officer cannot travel beyond the directions and recompute the income....
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....tax Officer and in fresh assessment, the Inspecting Assistant Commissioner may be justified in giving direction to the Income-tax Officer for making assessment in respect of any source of income which has not even been considered by the Income-tax Officer. In a case where the matter has travelled before the appellate authority may be the Appellate Assistant Commissioner/Commissioner of Income-tax (Appeals) or the Income-tax Appellate Tribunal, the Income-tax Officer is bound by the directions given by such authority. The power under section 144A could not be invoked for extending the jurisdiction of the Income-tax Officer which is limited to the extent of the directions being given by such an appellate authority. The Inspecting Assistant Co....