The AO made an addition on account of cash credits during the relevant assessment year. In the appeal before the Tribunal, while the amount of addition was reduced, the income of the relevant assessment year and the preceding assessment year was clubbed to an even figure of Rs. 1,00,000. It\u00a0 was\u00a0 noted\u00a0 that the assessee undertook to file a voluntary return of income, based on the Tribunal\u2019sfindings.<\/p>\n
\u00a0<\/p>\n
Can the Tribunal give findings pertaining to an assessment year not covered by\u00a0\u00a0 the appeal?<\/p>\n
\u00a0<\/p>\n
The assessee argued that the addition made by the Tribunal was with the consent\u00a0 of the parties. Therefore, no grievance can be raised before the Court. The department argued that there was no sanction in law permitting the Tribunal to give findings pertaining to an assessment year, other than the year, which is the subject matter of an appeal before it.<\/p>\n
\u00a0<\/p>\n
The Supreme Court held that the approach adopted by the Tribunal\u00a0 was incorrect.\u00a0\u00a0 It was only permitted to give directions pertaining to the assessment year before\u00a0\u00a0\u00a0 it, and not pertaining to any other year. Further, the manner in which the income for the two years was clubbed on an ad <\/em>hoc <\/em>basis was not justifiable. (AY. 1953-54) (CA No. 2459 of 1966 dt. 14-2-1969)<\/p>\n Editorial <\/em><\/strong>: Section 150 of the Income-tax Act, 1961 does provide for a situation where the Tribunal can give findings pertaining to an assessment year other than the year before it. The corresponding provision under the Indian Income-tax Act, 1922 was the second proviso to section 34(3). However, this provision was not considered by the Supreme Court.<\/p>\n \u201cThe true measure of any society can be found in how it treats its most vulnerable members.\u201d<\/em><\/p>\n – Mahatma Gandhi<\/p>\n","protected":false},"excerpt":{"rendered":" S.254(1) : Appellate Tribunal – Powers \u2013 No power to give any directions with respect to an assessment year not covered by the appeal. [ Indian Income-tax Act, 1922, S.33(4) ]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-13457","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-3v3","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13457","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=13457"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13457\/revisions"}],"predecessor-version":[{"id":13458,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/13457\/revisions\/13458"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=13457"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=13457"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=13457"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}