2002 (10) TMI 55

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... . Counsel for the assessee also pressed before us for grant of deductions under section 40(b) of the Act after retaining the net income fixed by the officer. We have already noticed that the Assessing Officer himself fixed the net income only at 8 per cent. as against 10 per cent returned by the assessee for the earlier years, and it is inclusive of all deductions. When such a conditional order wa .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... 8 per cent. of the contract receipts. It was specifically mentioned by the Assessing Officer that the net income fixed at 8 per cent. is inclusive of all deductions towards payment of salary and interest to partners. In other words, the net income so fixed is after excluding all deductions which are available to the assessee. The assessee, however, contested the assessment in the first appeal and .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... have heard Sri P. Balachandran, counsel appearing on behalf of the assessee, and senior counsel Sri P.K.R. Menon, on behalf of the Revenue. The assessee's counsel contended that the order of the Tribunal has resulted in enhancement of tax for one year, for which they have no powers. Admittedly, the first appellate authority dismissed the appeal, and, therefore, the only action open to the Revenue .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eductions otherwise eligible to the assessee. Therefore, the only option open to the Tribunal on appeal by the assessee was to reduce the net income if the Tribunal found reasons for the same. There was no scope for enhancement of net income in the absence of any cross-appeal by the Revenue. Therefore we feel the Tribunal committed an error in enhancing the income from 8 per cent. to 10 per cent., .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... eductions under section 40(b) of the Act after retaining the net income fixed by the officer. We have already noticed that the Assessing Officer himself fixed the net income only at 8 per cent. as against 10 per centreturned by the assessee for the earlier years, and it is inclusive of all deductions. When such a conditional order was passed and in the absence of any material to vary the same, we .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X