9911796707
|
Home
Issues involved: Assessment of income for the year 1959-60, legality of addition of unexplained investment in reassessment.
Assessment of income: The Income-tax Officer assessed the income of the assessee at Rs. 99,494 for the year 1959-60. The Appellate Assistant Commissioner dismissed the assessee's appeal, but the Income-tax Appellate Tribunal set aside the assessment order and remanded the matter for re-estimation considering the assets and liabilities at the beginning and end of the year. Legality of addition: After remand, the Income-tax Officer, while determining the income from the truck business as Rs. 99,494, added Rs. 54,075 as income from "unexplained investment." The Appellate Assistant Commissioner and the Income-tax Appellate Tribunal upheld this addition. The questions before the court were whether the reassessment at Rs. 1,48,062 could be challenged when the original assessment was Rs. 99,494, and whether the assessee could benefit from intangible additions made in previous years to explain the addition of Rs. 54,075 as unexplained investments. Judgment: The court held that the Income-tax Officer exceeded his authority by adding income from a new source during reassessment, as his power of enhancement was limited to existing income sources. Referring to a previous case, the court emphasized that introducing new sources of income for enhancement was not permissible. Therefore, the reassessment amount could not be challenged, and the assessee was not entitled to the benefits of intangible additions. The first question was answered in favor of the assessee, and the second question did not arise. No costs were awarded in this matter.
|
