2012 (9) TMI 1000 - AT - Income Tax

Summary

Issues involved: Appeal against orders of CIT(A) setting aside issues to AO for decision u/s 251(A) of the Income-tax Act, 1961.

Summary:
The Appellate Tribunal ITAT Amritasar heard five appeals filed by the Revenue against orders of the CIT(A) for different assessment years. The Revenue contended that the CIT(A) had no power to set aside the issues to the Assessing Officer (AO) for decision, as done in the impugned orders. The CIT(A) had directed the AO to decide the issues with certain directions, which the Revenue argued was not within the CIT(A)'s authority u/s 251(A) of the Act. The assessee's counsel, on the other hand, supported the CIT(A)'s orders.

After hearing both parties and examining the relevant provisions of section 251(1)(a) of the Act, the Tribunal found that the CIT(A) had exceeded his powers by directing the AO to decide the issues. The Tribunal noted that the power to "set aside" had been withdrawn by the Finance Act, 2001. Therefore, the Tribunal canceled the impugned orders in all five appeals and directed the CIT(A) to decide the issues afresh under the law after providing an opportunity to the parties.

As a result, all five appeals of the Revenue were allowed for statistical purposes. The order was pronounced in the open court on 3rd September 2012.