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TMI Blog2015 (10) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... sessed has been enhanced. In the case before us, the change of head of income has resulted in enhancement of assessed income and tax thereon and therefore the provisions of sec.251(1) are attracted. From the order of the CIT(A) before us, it is clear that before such enhancement of the assessment, by such change of head of income, no notice u/s 251(2) was issued to the assessee. Therefore, in our opinion, the CIT(A) ought to have issued notice u/s 251(2) of the Act. Since such notice has not been issued by the CIT(A), we set aside the order of the CIT(A) and remit the issue to the file of the CIT(A) with a direction to re-adjudicate the appeal before him de novo in accordance with law after issuing a notice u/s 251(2) of the Act - Decided i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e building. The assessee was requested to furnish details of interest attributable to land and also towards capital utilized for acquiring other assets which, according to the AO, should have been capitalized as this is the first year of commencement. The assessee could not furnish the details and therefore the AO apportioned 10% of the interest claimed as relatable to loan utilized for acquiring other assets and further held that this being capital in nature, the same is also not allowable as revenue expenditure. He, accordingly added it to the returned income of the assessee. As regards the claim of depreciation, he held that 10% of depreciation claim is required to be disallowed as it is attributable to the other assets of the assessee. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... owed. Thus, it has resulted in enhancement of income and the CIT(A) ought to have issued show cause notice to the assessee prior to such enhancement of income u/s 251 of the Act. He, therefore, submitted that there is violation of principles of natural justice and the order of the CIT(A) needs to be set aside. Copy of the order giving effect to the CIT(A) s order is also filed before us. The learned Departmental Representative, on the other hand supported the order of the CIT(A) and submitted that the CIT(A) has only changed the heads of income but has not enhanced the income of the assessee and therefore there was no violation of principles of natural justice. 6. Having regard to the rival contentions and the material on record, we f ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nced only if the tax assessed has been enhanced. In the case before us, the change of head of income has resulted in enhancement of assessed income and tax thereon and therefore the provisions of sec.251(1) are attracted. From the order of the CIT(A) before us, it is clear that before such enhancement of the assessment, by such change of head of income, no notice u/s 251(2) was issued to the assessee. Therefore, in our opinion, the CIT(A) ought to have issued notice u/s 251(2) of the Act. Since such notice has not been issued by the CIT(A), we set aside the order of the CIT(A) and remit the issue to the file of the CIT(A) with a direction to re-adjudicate the appeal before him de novo in accordance with law after issuing a notice u/s 251(2) ..... X X X X Extracts X X X X X X X X Extracts X X X X
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