1990 (10) TMI 148 - AT - Income Tax

Summary

Issues:
1. Whether the original assessment order merged in the order of the AAC passed earlier, affecting the subsequent assessment order.
2. Whether the WTO should have considered the assessee's petition and deficit in the estate of late R.G. Saharia.
3. Whether the AAC was justified in dismissing the appeal by the assessee based on the merger of the original assessment order with the earlier AAC order.
4. Whether the assessee can bring new points for consideration in an appeal when those points were not raised in the original assessment or earlier appeal.

Detailed Analysis:
1. The appeal involved a dispute regarding the merger of the original assessment order with the order of the AAC passed earlier. The WTO passed a fresh order to give effect to the earlier AAC's directions, which set aside the original assessment order. The assessee contended that the original assessment order did not merge with the earlier AAC order, and the WTO should have considered the claim in a letter dated 28-4-1984. The ITAT considered the orders of the authorities and the original proceeding, noting that the WTO had excluded certain assets and liabilities as per the earlier AAC's directions. The ITAT upheld the AAC's decision that the original assessment order had merged with the earlier AAC order, and the assessee could not raise new issues not considered in the original or appellate orders.

2. The second issue involved whether the WTO should have considered the assessee's petition and the deficit in the estate of late R.G. Saharia. The earlier AAC's order directed the WTO to exclude certain assets and liabilities, which the assessee claimed should have been considered in the subsequent assessment. The present AAC held that the WTO was not required to give an opportunity to the assessee before giving effect to the appellate order. The ITAT affirmed the AAC's decision, stating that the assessee could not agitate issues not raised in the original or appellate orders.

3. The third issue focused on the AAC's dismissal of the appeal by the assessee based on the merger of the original assessment order with the earlier AAC order. The AAC concluded that the assessee could not raise issues not considered in the original or appellate orders. The ITAT analyzed precedents where final orders of AAC were held binding, and no new points could be raised at a later stage. The ITAT agreed with the AAC's decision, emphasizing that the assessee could not revive issues not raised earlier.

4. The final issue raised was whether the assessee could bring new points for consideration in an appeal when those points were not raised in the original assessment or earlier appeal. The ITAT cited cases where final orders of AAC were considered binding, and no new points could be raised later. The ITAT upheld the AAC's decision to reject the appeal by the assessee on this point, emphasizing that issues not raised earlier could not be revived at a later stage.

In conclusion, the ITAT dismissed the appeal by the assessee, affirming the AAC's decision based on the merger of the original assessment order with the earlier AAC order and the principle that new issues not raised earlier could not be considered at a later stage.