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TMI Blog1993 (12) TMI 102X X X X Extracts X X X X X X X X Extracts X X X X ..... and business losses is more than Rs. 1 lakh but is reduced to nil upon such set off. III. Where the total income computed is a loss but that loss is more than Rs. 1 lakh. IV. Where the total income is below Rs. 1 lakh but if agricultural income is taken into consideration it exceeds Rs. 1 lakh. 3. IT Appeal Nos. 576 and 577/Hyd/1993 fall under Category-I. The income determined as per assessment order is Rs. 1,07,950 for asst. year 1979-80 which is reduced to Rs. 57,950 consequent to the order of the Commissioner (Appeals). It is Rs. 1,71,740 for assessment year 1980-81 and is reduced to Rs. 46,920. The orders which are under appeal before the Tribunal are the assessment orders wherein the income was determined at Rs. 1,07,950 and Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t that order in first appeal. It is, therefore, imperative that the total income computed in that order of assessment which gives rise to appeal to the Tribunal is relevant. Any modification or alteration in the income consequent to the appellate order would not be relevant. The contention of the assessee is that the order giving effect to appellate order is also an order of assessment as held by their Lordships of the Andhra Pradesh High Court in the case of Bakelite Hylam Ltd. v. CIT [1988] 171 ITR 344. It is true that the order giving effect to the order of the first appellate authority is also an order of assessment, but the income determined in that order might not be the income computed by the Assessing Officer as the Assessing Office ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... income". It is defined under section 2(45) to mean total income referred to in section 5 computed in the manner laid down in the Act. Section 5 defines the scope of "total income" and provides that the total income of any person includes all income from whatever source derived which is received or is deemed to have been received, accrues or arises or is deemed to have accrued or arisen. Chapter III consisting of sections 10 to 13A provides for certain incomes not forming part of total income. One such exemption is agricultural income provided under section 10(1) of the Act. Chapter IV provides how the total income is to be computed and section 14 thereof provides that the computation of total income would be classified under various heads. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he specific and particular heads as provided under sections 71A, 72, 72A, 73, 74, 74A, 75, 78 and 79. Here also, it is remaining or the resultant income under that particular head which enters the aggregate of total income to be computed under the Act. Therefore, it is that aggregate of income as set off by unabsorbed losses like unabsorbed depreciation, that would be the assessee's total income and would determine the fee payable by the assessee for filing the appeal before the Tribunal. If that happens to be below Rs. 1 lakh, a fee of Rs. 250 is to be paid, and in case it is more than Rs. 1 lakh, a fee of Rs. 1,500 is to be paid. Based on this, the fees payable in the following cases would be as under: -------------------------- ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ------------------------------------------------------------------------------------------------------------------------------------------------- 6. The third situation is in Appeals Nos. 1022 and 1023/Hyd/1993 in the case of M/s Resource Technology (P.) Ltd. Here, the total income is determined at a loss and that loss is more than Rs. 1 lakh, viz., Rs. 47,56,230. "Income" includes loss in the light of the decision of the Supreme Court in the cases of CIT v. Harprasad Co. (P.) Ltd. [1975] 99 ITR 118, CIT v. J.H. Gotla [1985] 156 ITR 323 and CIT v. P. Doraiswamy Chetty [1990] 183 ITR 559 (SC). Therefore, where the loss determined is more than Rs. 1 lakh, the total income would be minus/negative Rs. 1 lakh or more. Any negative fi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... wo appeals would be Rs. 1,500. 7. The last situation is where the total income assessed is less than Rs. 1 lakh but if the agricultural income is considered, it becomes more than Rs. 1 lakh. This position obtains in the case of Shri N. V. Soma Raju [IT Appeal No. 961 (Hyd.) of 1993]. The total income before set off in this case is Rs. 58,011. After setting off the loss, it works out to 'nil'. Agricultural income as per the assessment order is Rs. 1,37,556. As discussed above, the total income is the aggregate amount of the incomes which are not excluded in computing the total income under Chapter III. Agricultural income is one income which is not to be included while computing the total income of an assessee and that is provided in sub-s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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