COMMISSIONER OF INCOME TAX Vs. GHEWARCHAND CHUNILAL MOHTA

JUDGEMENT

(1.) AT the instance of the Commissioner of Income -tax, Nagpur, the following question is referred to this court under section 256(1) of the Income -tax Act, 1961 ('the I.T. Act') : 'Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was correct in holding that the order of the Appellate Assistant Commissioner setting aside the order of the Income -tax Officer was limited to specific issue ?'

(2.) THE assessee declared an income of Rs. 12,636 in his return of income the assessment year 1973 -74. The Income -tax Officer had issued notices under sections 143(2) and 142(1) of the Income -tax Act. The assessee failed to comply with them and, hence, the Income -tax Officer framed an ex parte assessment under section 144 on the total income of Rs. 35,510. The assessee preferred an appeal before the Appellate Assistant Commissioner who, by order dated June 15, 1976, set aside the ex parte order of assessment of the Income -tax Officer for disposal afresh. The Income -tax Officer framed a fresh assessment under section 143(3) on a total income of Rs. 83,510 after making all necessary enquiries and hearing the assessee. The assessee preferred an appeal before the Appellate Assistant Commissioner challenging the fresh assessment, raising a ground that the Income -tax Officer could not have enhanced the income originally assessed. The Appellate Assistant Commissioner dismissed the appeal. The Tribunal held that the original order of the Income -tax Officer was set aside with certain directions the scope of which was very restricted and limited, beyond which the Income -tax Officer could not go.

(3.) HAVING perused the whole background and the said order, we entertain no doubt that the scope of enquiry of the Income -tax Officer was not at all restricted. The original order was ex parte. It has been set aside. Certain reasons are given. This does not mean that the setting aside was only on restricted grounds. The following observations of the order are significant : 'I am, therefore, of the opinion that the Income -tax Officer has not gone through all the details of the case.'