COMMISSIONER OF INCOME TAX, WEST BENGAL vs WESMAN ENGG. CO. (P.) LTD.

The Supreme Court held that under Section 248 of the Income Tax Act, 1961, the Appellate Assistant Commissioner has the jurisdiction to determine the quantum of income chargeable, even when the appeal concerns the liability to deduct taxes under Section 195(2). The Court clarified that Section 251(1)(c) empowers the appellate authority to pass any orders it deems fit, thus affirming the Appellate Tribunal's decision to allow the assessee's cross-objection. The appeal by the Revenue was dismissed, confirming the lower authorities' findings regarding the applicability of the Double Taxation Avoidance Agreement.