COMMISSIONER OF INCOME TAX Vs. KRISHNA RANA

JUDGEMENT

(1.) THESE are references under S. 256(2) of the IT Act, 1961, in relation to the asst. yrs. 1970 -71 and 1971. -72.

(2.) THE assessee is a doctor in the town of Arrah in this State. She was assessed as an " individual " on income from salary and medical profession. She was assessed on a total income of Rs. 15,860 and Rs. 58,895 for the two assessment years. The assessee appealed against the orders of assessment for the two years which were disposed of by a common order by the AAC. The appeals were dismissed with some modifications inasmuch as the total income for the asst. year 1970 -71 was reduced by Rs. 1,000 and for the subsequent asst. year 1971. -72. expenses were allowed at Rs. 12,000 instead of Rs. 5,800 allowed by the ITO. Thus, a further relief of Rs. 6,200 was allowed to the assessee for the second assessment year. The assessee filed appeals before the Tribunal. On the date fixed for hearing, i.e., April 11, 1975, no one appeared on behalf of the assessee. The Tribunal heard the Departmental represntative and disposed of the appeals on merits. Whereas for the asst. year 1970 -71 expenses had been allowed to the tune of Rs. 2,000, the Tribunal allowed a further deduction of Rs. 1,000. The deduction ultimately came to Rs. 3,000 as against Rs. 5,000 claimed by the assessee. In regard to the subsequent asst. year 1971. -72. the Tribunal while upholding the estimate of income, further allowed deduction of Rs. 6,000 on account of expenses. The deduction thus for that year came to Rs. 18,000.

(3.) LONG after the appeals had been disposed of, on May 20, 1975, an application was filed by the assessee before the Tribunal for restoration/ rehearing of the appeals. The ground for restoration advanced was that the assessee had not been given reasonable opportunity of pleading her case. The Tribunal, by order dated July 19, 1975, restored the appeals and refixed them for hearing. Being aggrieved by the order of the Tribunal restoring the appeals for rehearing, the Revenue moved the Tribunal for making a reference to this Court in regard to its power to restore an appeal disposed of on merits. The Revenue failed before the Tribunal. The Revenue thereafter moved this Court under S. 256(2) of the Act. This Court allowed the application and called for the following question, noted below for our opinion. Hence, the references :