TaxTMI 
TaxTMI 
1992 (5) TMI 10
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.... Appellate Tribunal, Cuttack Bench, Cuttack (in short, "the Tribunal"). " Whether, on the facts and in the circumstances of the case, the Income-tax Appellate Tribunal was right in law in holding that the Incometax Officer had no jurisdiction to consider in a set aside assessment any different source of income not considered in the original assessment ? " The background facts as detailed in the statement of the case are to the following effect : The assessment years involved are 1970-71 to 1974-75 for which the late S. V. Divakar (hereinafter referred to as "the assessee") had filed returns. After his death, his legal heir, Sri Kumar Nair, was substituted. The assessee had filed his returns in respect of the income derived from exe....
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....ments of the assessee afresh, the Income-tax Officer held that the income of his wife from the truck in respect of which returns were filed separately before the Income-tax Officer was to be included in his income, as he carried on benami business in the name of his wife. The inclusion of the wife's income was assailed by the assessee before the Appellate Assistant Commissioner. The primary stand taken was that the Assessing Officer had no jurisdiction to consider in a set aside assessment any source of income which was not considered in the original assessment, as it did not form part of the direction of remand.. The plea found acceptance by the Appellate Assistant Commissioner who directed the Income-tax Officer to exclude the income of t....
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.... an assessment is set aside without imposing any restrictions or limitations, the Assessing Officer has the same power for making the assessment afresh as he could have originally done. In such a case, all matters and aspects that have relevance can be considered. A difficulty arises when the assessment has been set aside with a specific direction and the Assessing Officer stumbles upon a new source which was not noticed by him while making the original assessment. The information relating to such new source may be on various accounts, for example, the direction by the appellate authority in another case, revelation due to any investigation. There may be so many other circumstances, on account of which the information may come into the poss....
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....icer could assume jurisdiction to tax that new source of income while making a fresh assessment in pursuance of an order of remand. The power to enhance, if it existed, was confined to the old sources of income which were the subject-matter of appeal to the appellate authority. This principle applies where there is a specific direction given in the order of remand relating to any particular source. Where, however, the remand is an open one, the Assessing Officer shall not be restricted to any particular source and all the relevant aspects can be taken into consideration by him including any new source of income which was not the subject-matter of assessment earlier. It would, therefore depend upon the nature of the order of remand. In the i....