COMMISSIONER OF INCOME TAX Vs. MAHINDRA AND COMPANY

JUDGEMENT

(1.) THE Income -tax Appellate Tribunal has referred the following questions of law arising out of its order dated September 10, 1981, in respect of the assessment year 1972 -73 under Section 256(1) of the Income -tax Act :

(2.) THE brief facts of the case are that the assessment of the assessee in respect of the period ending on December 31, 1971, was completed by the Income -tax Officer under Section 143(3) of the Act and deduction under section 47(vi) was claimed for a sum of Rs. 4,25,415 which was the profit arising out of the amalgamation of Eastern Trading' Syndicate Pvt. Ltd., with Shree Vijay Laxmi Trading Company Ltd. (sic). The Income -tax Officer was of the view that this surplus which has been claimed under Section 47(vi) of the Act is allowable and the claim appears to be proper. Besides allowing this item as not liable to tax, tax was levied in respect of different sources of income including tax on capital gains and income from rent, etc.

(3.) MR . Bafna has relied on the decision of this court in the case of Rambilas Chandram v. CIT wherein it was observed that where a case is sent back to the Income -tax Officer without any restrictions, then the Income -tax Officer can make additions of such source of the income of the assessee in the first assessment, he can make such addition in the fresh order of assessment.