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TMI Blog1987 (1) TMI 39X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee derived income by trading in oilseeds and other items. It declared in its return, income based on profits shown in its profit and loss account. It had kept in its books of account separate trading accounts with quantitative details in respect of its business in different commodities. In the course of the assessment proceedings, the Income-tax Officer came across a discrepancy in the " sarki " account. He found that the assessee had purchased 477 bags of this commodity but its sales and closing stock amounted only to II 7 bags. The Income-tax Officer, by his letter dated December 11, 1970, called upon the assessee to explain the discrepancy of 360 bags. On December 14, 1970, one Jamnadas Virji, a partner of the assessee, appeared befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roper and illegal and as such the same be deleted ". The Appellate Assistant Commissioner admitted this ground on the basis that it emerged from the Income-tax Officer's order. He held that the explanation of the assessee for the discrepancy of 198 quintals was acceptable. He agreed with the assessee that " this was case of a misunderstanding ". He, therefore, deleted the addition of the said amount of Rs. 18,052. The Revenue filed an appeal before the Income-tax Appellate Tribunal and challenged the order of the Appellate Assistant Commissioner, in so far as it deleted the addition made by the Income-tax Officer of the said amount of Rs. 18,052. The Tribunal, basing itself upon the judgment of this court in Jivatlal Purtapshi v. CIT [196 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t the additional ground in this behalf was taken at the hearing of the appeal before the Appellate Assistant Commissioner, taking advantage of the fact that no one on behalf of the taxing authority was present to represent it. Even at that stage, the additional ground taken did not say that there was any mistaken belief of fact. All that was said was that the addition was " improper, illegal ". Having regard to the statement made by the partner of the assessee, there was nothing either improper or illegal in the order of the Income-tax Officer in regard to the addition. While the statement stood, the assessee could not have a grievance in that behalf and was not entitled to appeal there against. Therefore, the Appellate Assistant Commissi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e circumstances which misled the assessee to give his consent to the addition of Rs. 15,000, no appeal could lie to the Appellate Assistant Commissioner ? " It said, in answer, that it could not be held as a matter of law that the remedy of appeal under the Act could not be availed of by the assessee without having filed a rectification application before the Income-tax Officer in a case where the order of the Income-tax Officer showed that the assessee had agreed to the addition to the income. There was no provision in the Act wherein the remedy of appeal against the order of the Income-tax Officer or of the Appellate Assistant Commissioner was barred if the impugned order mentioned that the order had been passed on the agreement of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o the relief in appeal. With great respect to the learned judges of the Punjab and Haryana High Court who decided Chhat Mull Aggarwal's case [1979] 116 ITR 694, we are unable to agree. Where an assessee has made a statement of facts, he can have no grievance if the taxing authority taxes him in accordance with that statement. If he can have no grievance, he can file no appeal. Therefore, it is imperative, if the assessee's case is that his statement has been wrongly recorded or that he made it under mistaken belief of fact or law , that he should make an application for rectification to the authority which passed the order based upon the statement. Until rectification is made, an appeal is not competent. In these circumstances, we are o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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