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TMI Blog2012 (10) TMI 244X X X X Extracts X X X X X X X X Extracts X X X X ..... iving effect to the order of the Income-tax Appellate Tribunal, when the Tribunal neither directed to enhance the assessment nor altered the income determined by the Commissioner of Incometax( Appeals). The detailed grounds of appeal filed by the assessee are extracted below:- "1. The order of the Commissioner of Incometax( Appeals) confirming the order passed by the assessing officer under section 143(3) read with section 254 is illegal, arbitrary, against the weight of evidence and all probabilities of the case. The same is not sustainable in law. 2. The assessing officer erred in passing an order under section 143(3) r/w 254 when the Income-tax Appellate Tribunal has only remitted a particular issue for consideration by the assessing o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Commissioner of Income-tax(Appeals) only split up the receipts between land and building and made the partners of the appellant to agree for the determination of the total income at Rs. 16,12,679/- which the partners have accepted without going into the details of the computation as they were all ignorant of the provisions of the Act and had no other alternative except to the computation made by the Commissioner of Income-tax(Appeals) as otherwise the appeal would have been dismissed by the Commissioner of Income-tax(Appeals). 10.The assessing officer erred in determining the total income at Rs. 32,69,228/- when the income originally determined was only Rs. 28,11,700/- which was reduced to Rs. 16,12,679/- by the Commissioner of Incometax( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at Rs. 28,11,700/-. The above income was determined by the Assessing Officer by adopting a profit rate of 20% of the gross profit. The reopened assessment was taken in appeal before the Commissioner of Income-tax(Appeals). The Commissioner of Income-tax(Appeals) modified the total income in the hands of the assessee at Rs. 16,12,679/-. The assessee accepted the order of the Commissioner of Income-tax(Appeals). But the Revenue filed an appeal before the Tribunal. The contention of the Revenue was that the Commissioner of Income-tax(Appeals) has erred in giving a deduction of Rs. 20 lakhs as cost of the land. The Tribunal found that there is no discussion whatsoever on this issue as the issue was never raised before the Assessing Officer. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessing authority is justified in estimating the profit at 12%, which is also the rate adopted by the Commissioner of Income-tax(Appeals) earlier. He accordingly upheld the order of the Assessing Officer. 6. It is against the above that the assessee has come in appeal before us. 7. In short, in the original assessment, the income was determined by the Assessing Officer at Rs. 7.56,600/-. In the reassessment order the income was determined at Rs. 28,11,700/-. This income of Rs. 28,11,700/- determined in the income escaping assessment was challenged before the Commissioner of Income-tax(Appeals). It is only in that appellate order that the Commissioner of Income-tax(Appeals) has modified and determined the income of the assessee at Rs. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... one beyond the jurisdiction granted by the Tribunal. He has erred in law in re-determining the income of the assessee even after giving a finding that the claim made by the assessee for deduction of Rs. 20 lakhs was justified. 9. Therefore, we find that the order of the assessing authority under section 143(3), read with section 254, is contrary to law. It is set aside. As a result, the order of the Commissioner of Income-tax(Appeals) also stands vacated. 10. We remit back the matter to the Assessing Officer to determine the income at Rs. 16,12,679/- as determined by the Commissioner of Income-tax(Appeals) and close the file. If any demand is payable by the assessee with reference to the income of Rs. 16,12,679/-, that may be collected an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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