2021 (6) TMI 458 - AT - Income Tax

Powers conferred to CIT(A) u/s 251 - CIT(A) power to direct the AO for issuance of notice u/s 148 - whether CIT(A) exceeded its jurisdiction by directing the Assessing Officer to issue notice u/s 148 of the Act for Assessment Year 2011-12 after failing procedure laid down u/s 147, 148 and 151? - HELD THAT - Ld.CIT(A) is empowered to confirm, reduce, enhance or annul the assessment. In the present case, Ld.CIT(A) annulled the assessment and further directed to issue notice u/s 148 of the Act. No such power has been granted by the Act, therefore, the impugned direction of Ld.CIT(A) in excess of the jurisdiction conferred by section 251 of the Act, hence the same is set aside. Thus, grounds raised by the assessee in this appeal are allowed.

Summary

Issues involved:
1. Validity of direction to issue notice u/s 148 of the Act by Ld.CIT(A) for Assessment Year 2011-12.

Detailed Analysis:

Issue 1: Validity of direction to issue notice u/s 148 of the Act by Ld.CIT(A) for Assessment Year 2011-12

Summary of Facts: The case involved an appeal filed by the assessee against the order of Ld. CIT(A)-14, New Delhi dated 28.10.2019 for the assessment year 2011-12. The Assessing Officer re-opened the assessment based on cash transactions exceeding a certain limit. The assessee failed to provide justification for a deposited amount, leading to an addition to the assessed income.

Appellant's Argument: The appellant contended that the Ld.CIT(A) exceeded its jurisdiction by directing the Assessing Officer to issue notice u/s 148 of the Act for the assessment year 2011-12. The appellant argued that since the initiation of proceedings and assessment under section 147 of the Act was held invalid, no direction could be issued, rendering the order illegal and without jurisdiction.

Respondent's Argument: The Ld. Sr. DR supported the order of Ld.CIT(A) and argued that the direction issued was within the powers conferred by Ld.CIT(A) under section 251 of the Act.

Decision: The Tribunal analyzed section 251 of the Act, which empowers the Ld.CIT(A) to confirm, reduce, enhance, or annul the assessment. The Ld.CIT(A) in this case annulled the assessment and directed the issuance of notice u/s 148 of the Act, a power not granted by the Act. Therefore, the direction was deemed to be in excess of the jurisdiction conferred by section 251 of the Act, leading to its setting aside. Consequently, the grounds raised by the assessee were allowed, and the appeal was allowed in favor of the assessee.

Conclusion: The Tribunal concluded that the direction given by Ld.CIT(A) to issue notice u/s 148 of the Act for the assessment year 2011-12 was beyond the scope of the powers conferred by section 251 of the Act. As a result, the direction was set aside, and the appeal of the assessee was allowed.

This detailed analysis provides a comprehensive overview of the issues involved in the legal judgment, the arguments presented by both parties, and the final decision rendered by the Tribunal.