9911796707
TMI Blog2004 (10) TMI 82X X X X Extracts X X X X X X X X Extracts X X X X ..... enhance, annul or set aside an assessment and refer back the same to the Assessing Officer. The said powers are very vast and the restriction imposed by the Tribunal that the Assessing Officer shall not exceed the additions originally made, i.e., beyond Rs. 48,891 (wrongly mentioned as Rs. 49,091) is not based on legal principles. - The questions of law referred by the Tribunal are answered in favour of the Revenue and against the assessee. - - - - - Dated:- 11-10-2004 - Judge(s) : G. S. SINGHVI., AJAY KUMAR MITTAL. JUDGMENT The judgment of the court was delivered by AJAY KUMAR MITTAL J. - At the instance of the Revenue, the Income-tax Appellate Tribunal, Delhi Bench "D", Delhi (for short "the Tribunal"), has referred the follow ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... The Commissioner of Income-tax (Appeals) vide his order dated February 17, 1992, directed the Assessing Officer that in case he came to the conclusion that the sources of expenses remained unexplained, he will also consider similar expenses likely to have incurred by the assessee for the period not covered in the seized diary but covered for the assessment year in question. Aggrieved by the aforesaid directions of the Commissioner of Income-tax (Appeals), the assessee preferred an appeal to the Tribunal against the impugned order and the leaned Tribunal modified the direction of the Commissioner of Income-tax (Appeals) that the addition in any case on this account should not exceed the addition originally made. It is against the said obser ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... making such further inquiry as may be necessary, and the Assessing Officer shall thereupon proceed to make such fresh assessment and determine, where necessary, the amount of tax payable on the basis of such fresh assessment; (b) in an appeal against an order imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty; (c) in any other case, he may pass such orders in the appeal as he thinks fit. (2) The Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction. Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hich are placed on an assessee while preferring an appeal under section 246. And in this view of the matter, hearing an appeal in the present case if the Appellate Assistant Commissioner has set aside the assessment and directed an inquiry in respect of the status of the assessee and thereafter to proceed for a fresh assessment it could not be said that the Appellate Assistant Commissioner has gone beyond his jurisdiction which he is exercising under section 251(1)(a) of the Act." In Devichand Pan Mal's case [1986] 160 ITR 545, the Rajasthan High Court observed as under: "A perusal of section 251(1) shows that the powers of the Appellate Assistant Commissioner are wider than those of the ordinary appellate court under the Code of Civil ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Kanpur Coal Syndicate [1964] 53 ITR 225, the Supreme Court laid down in very clear terms that the appellate authority has plenary powers while disposing of the appeal and that this power is co-terminous with that of the Income-tax Officer. While commenting on the powers of the Appellate Assistant Commissioner under section 31 of the Act (now section 251), it was observed by the Supreme Court as under: "If an appeal lies, section 31 of the Act describes the powers of the Appellate Assistant Commissioner in such an appeal. Under section 31(3)(a) in disposing of such an appeal the Appellate Assistant Commissioner may, in the case of an order of assessment, confirm, reduce, enhance or annul the assessment, under clause (b) thereof he may se ..... X X X X Extracts X X X X X X X X Extracts X X X X
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