BIMALA GULATI Vs. APPELLATE ASSISTANT COMMISSIONER

JUDGEMENT

(1.) THE petitioner is a medical practitioner at Bhopal. For the assessment year 1980-81, of which the previous year ended on March 31, 1980, the petitioner filed a return showing a total income of Rs. 25,304, out of which the income from the medical profession was shown at Rs. 24,000. THE Income-tax Officer, by his order dated March 22, 1983, estimated her income from the medical profession at Rs. 30,000 and the total income was assessed at Rs. 16,700. THE petitioner preferred an appeal to the Appellate Assistant Commissioner aggrieved by the Income-tax Officer's assessment. In the appeal, the Appellate Assistant Commissioner issued a notice, annexure C, dated July 11, 1984, to the petitioner under Section 251(1)(a) of the Income-tax Act, 1961, to show cause why the income arising in the name of Vimala Nursing Home at Bhopal be not included in her individual income for this assessment year for the reasons given in the notice. THE persons likely to be affected by such an action were also given opportunity to show cause against the same. Aggrieved by the issuance of this notice, the petitioner has filed this writ petition for quashing the same.

(2.) THE scope of power of the Appellate Assistant Commissioner in disposing of an appeal under Section 251(1)(a) of the Income-tax Act, 1961, is well-settled by authoritative decisions of the Supreme Court. Learned counsel for the petitioner contends that, on the facts and in the circumstances of the present case, the Appellate Assistant Commissioner is not empowered to examine the matter mentioned in the impugned notice in the petitioner's appeal pending before him since that would amount to examining a new source of income not shown in the petitioner's return and not considered in the Income-tax Officer's order of assessment. It is argued that the power available in disposing of such an appeal does not extend to examining the same and, therefore, the impugned notice is liable to be quashed being in excess of jurisdiction of the Appellate Assistant Commissioner. This is the only question for decision in this petition.

(3.) THE question now is, whether in the present case, the impugned notice falls within the ambit of the powers of the Appellate Assistant Commissioner given by Section 251(1)(a) of the Income-tax Act, 1961.