9911796707
TMI Blog1987 (1) TMI 45X X X X Extracts X X X X X X X X Extracts X X X X ..... O. P. No. 1917 of 1978, the following questions have been referred to us by the Income-tax Appellate Tribunal, Cochin Bench: " (1) Whether, on the facts and in the circumstances of the case, and in the absence of an appeal being filed against the order of the 'first Appellate Assistant Commissioner who disposed of the appeal ex parte' directing the Income-tax Officer 'to compute the profit unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... made by this court under section 394(2) of the Companies Act, 1956, and the capital of the company representing the value of those assets was accordingly reduced. The Income-tax Officer included a sum of Rs. 19,672 as income of the assessee on the basis of computation made under section 41(2) of the Income-tax Act, 1961. The Appellate Assistant Commissioner held that the profit to be added under ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... der is, therefore, set aside and the Income-tax Officer is directed to do the assessment afresh in accordance with law and, in particular, to compute the profit under section 41(2) in accordance with the provisions of the Incometax Act and the rules made thereunder. " (emphasis supplied) Accordingly, the Income-tax Officer completed the assessment after recomputing the profit in accordance with ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner was to correctly recompute the profit in terms of section 41(2). In so far as the applicability of section 41(2) is concerned, that was a final order which has remained unchallenged. The subsequent proceeding of the Income-tax Officer was only in obedience of that order. The order of the Appellate Assistant Commissioner is thus res judicata in so far as the assessee was concerned in res ..... X X X X Extracts X X X X X X X X Extracts X X X X
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