ABDUL RAHIMAN SAIT Vs. INCOME TAX OFFICER

JUDGEMENT

(1.) This is a petition under Art.226 of the Constitution filed by an assessee under the Income Tax Act and calling in question a rectification order passed by the respondent, Income Tax Officer, Alleppey.

(2.) The petitioner was assessed for the year 1123 under the Travancore Act on 30-7-1952, by the Income Tax Officer, by accepting the book version of the profits in the Alleppey and Trivandrum branches and adding a sum of Rs. 7000 in respect of the Kottayam branch. A sum of Rs. 21,134 which was claimed as speculation loss in oil and pepper was also disallowed. After an unsuccessful appeal as regards the disallowance of the loss, before the Appellate Assistant Commissioner, the petitioner took the matter before the Commissioner under S.46 (2) of the Travancore Act. The Commissioner, by his order dated 18-8- 1951 found that the set off of the loss required re-investigation and so he set aside the assessment and remitted the matter, with a direction to the Income Tax Officer, to make a fresh assessment.

(3.) Purporting to carry out the Commissioners directions, as to re-assessment, the Income Tax Officer, reopened the book version of the Alleppey and Trivandrum branches and added his estimate of Rs. 30,000 and 7500 thereto respectively. As regards the Kottayam branch he enhanced his original addition of Rs. 7000 to Rs. 7132. He also disallowed Rs. 21,134 claimed towards speculation loss. This order was confirmed in appeal before the Appellate Assistant Commissioner. Further appeal was taken by the assessee before the Appellate Tribunal, but that authority found it unnecessary to decide on the main question raised as to the power of the Income Tax Officer to re-compute the profits of the branches, under the Commissioners remand order, in view to the acceptance by the assessee of a via media that the additions may be limited to Rs. 12,000 as regards the Alleppey branch and Rs. 2500 as regards Trivandrum branch and Rs. 7000 as originally, as regards Kottayam branch This order of the Appellate Tribunal, which gave the substance of justice to the petitioner was passed on 27-6-1953.