9911796707
TMI Blog2015 (10) TMI 1593X X X X Extracts X X X X X X X X Extracts X X X X ..... d to follow the principles of natural justice by not providing the assessee with a reasonable opportunity of being heard before giving enhancing effect of income by changing heads of income and imposing tax on the assessee. 3. Brief facts of the case are that the assessee, a partnership concern, filed its return of income for the assessment year 2005-06 on 31/10/2005 declaring taxable income of Rs. 2,64,948/-. During the assessment proceedings u/s 143(3) of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short], the Assessing Officer (AO) observed that the assessee was in the business of constructing and managing a technology park and that apart from building, huge other assets were added during the year and the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... amenities as 'income from other sources'. He submitted that interest on loan taken for construction of the building has been claimed as revenue expenditure allowable from the income from house property. He further submitted that from 'the income from other sources' the assessee had claimed depreciation on the movable assets which were given on rent along with amenities. He submitted that before the CIT(A), the assessee had stated that 'income from letting out of movable assets' has to be treated as income from business and depreciation on such movables is to be allowed. He submitted that the CIT(A), without properly appreciating the facts of the case, has held that the entire income both from building as well as amenities is to be charged ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the CIT(A) while the learned Departmental Representative submitted that the CIT(A) had only changed the head of income under which the income was to be charged and therefore no notice was required to be issued. The CIT(A) has plenary powers in disposing of an appeal and the scope of his powers is co-terminus with that of the AO and could do and can also direct the AO to do what he failed to do. In this process, he is empowered to consider a matter placed before him in all its aspects. But, if such change of head of income results in enhancement of income and consequently enhancement of tax, then the CIT(A) has to issue a notice u/s 251(1) of the Act before bringing it to tax. The Hon'ble Allahabad High Court in the case of Tarkeshwar Nath ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
