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Application for writ of prohibition restraining Income-Tax Officer from making de novo assessment. Analysis: The petitioner, a firm, was previously assessed as a registered firm but was later treated as unregistered due to failure to file an application for registration. The Appellate Assistant Commissioner set aside the assessment and directed the Income-tax Officer to consider the application for registration. The succeeding officer called for account books, leading to the petitioner's objection that no de novo assessment was warranted. The Income-tax Officer argued that the earlier assessment was nullified, necessitating a fresh assessment. The Appellate Assistant Commissioner's order focused on the firm's registration status, not the quantum of loss. The officer was directed to receive the registration application and act accordingly. The court noted the wide powers of the Appellate Assistant Commissioner under Section 31 of the Act but emphasized that no specific direction for a de novo assessment was given. Without such direction and lacking statutory authority, the Income-tax Officer's notice for a fresh assessment was deemed jurisdictionally improper. Consequently, the court held that the Income-tax Officer could only consider the registration application as directed by the Appellate Assistant Commissioner. Any attempt to conduct a new assessment on income or loss would exceed the officer's legal mandate. A writ of prohibition was issued, restraining the Income-tax Officer from making a de novo assessment. The petitioner was awarded costs, including advocate's fee.
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