COMMISSIONER OF INCOME-TAX, CALCUTTA vs RAI BAHADUR HARDUTROY MOTILAL CHAMARIA

The Supreme Court held that under Section 31(3) of the Indian Income-tax Act, 1922, the Appellate Assistant Commissioner cannot enhance the income of an assessee based on sources not considered by the Income-tax Officer during assessment. The Court affirmed the High Court's ruling that the Appellate Assistant Commissioner lacked jurisdiction to add Rs. 5,85,000 to the assessed income as it was not examined for taxability by the Income-tax Officer. The judgment clarified that 'consideration' does not encompass incidental examination of matters during assessment.