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TMI Blog2021 (7) TMI 1135X X X X Extracts X X X X X X X X Extracts X X X X ..... as passed u/s 153C of the act itself. Magnitude of the accommodation entry racket operated by the assessee in connivance with other persons. The bank account of M/s. Rishav Trading Company shows a mammoth credit for which the assessee has no explanation. The addition has been made in the hands of assessee on protective basis. No doubt on legal ground the orders u/s 153C of the Act were quashed by the ld. CIT (Appeals). In view of such glaring fact covering huge racket of providing accommodation entries of issuing bogus bills, the ld. CIT (Appeals)being conscious of his powers and his authority in directing the ld. Assessing Officer to issue notice under Section 147 / 148 CIT A in guiding the AO giving a direction to proceed u/s 147 148 of the act are in conformity with the income tax act, the direction itself does not prohibit or curtail upon any power of the assessing officer mentioned in those sections, it is in conformity with the provisions of the law and by merely giving this directions the assessee is not aggrieved at all as he has all the rights vested in the income tax act to challenge such action of the assessing officer as and when taken. When such a glaring ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... p is maintaining not one but nine other such entities who are engaged in providing bogus bills. Detailed statements were recorded of all the persons, large number of bank accounts were verified and date are tabulated which shows that it was a racket created by few persons wherein bogus entities were created for supplying bogus bills of steel to a large number of beneficiaries. Assessee is actively involved in this money laundering racket of providing accommodation entries. 03. The ld. CIT(Appeals), however, directed the ld. Assessing Officer to take action under Section 147 / 148 of the Act. Further As the ld. CIT (Appeals) allowed the appeal of the assessee by quashing the order under Section 153C of the Act, he did not adjudicate on the other grounds of appeal such as merits of the addition. The ld. CIT (Appeals) held that as the proceedings under Section 153C of the act stand quashed the other grounds of appeal on merits of the addition do not survive for adjudication and the same are dismissed without adjudicating them on merits. Thus, the assessee is aggrieved with the above two directions given by the learned CIT A. 02. In all these four appeals the identical grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ent and, therefore, the CIT (Appeals) has correctly given the direction to initiate proceedings under Section 147 / 148 of the Act. She further referred to the large number of decisions of the various courts to support her contentions. 07. We have carefully considered the contentions raised by the ld. [CIT] DR as well as the grounds raised by the assessee and the orders of the lower authorities. We have also considered the judgements relied upon by the learned CIT DR about the powers of the CIT A for giving such direction. We find that assessment orders were passed under Section 153C of the Act wherein search was conducted and bank account of the assessee was found and therefore notice under Section 153A of the Act was issued to the assessee. Consequently the assessment was framed and an addition of ₹ 26,56,06,067/- was made in case of the assessee on protective basis. It is to be noted that this addition has been made on account of cash deposits in various bank accounts held by M/s. Rishav Trading Company, whose proprietor was Mr. Manoj Kumar Jain the appellant in this case. The ld. CIT (Appeals) has correctly held that there is no seizure of any document and the on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Act. No doubt the action of the ld. Assessing Officer would always be tested on the parameters of Section 147 148 of the Act. The assessee would also be granted proper opportunity of hearing and objecting to such action of the learned assessing officer. The provisions of Section 116 of the income Tax Act clearly defines authority where the CIT (Appeals) is also mentioned. The powers of the CIT (Appeals) are enumerated under Section 251 on the Income Tax Act. The direction of the ld. CIT (Appeals) does not prejudice the assessee if the ld. Assessing Officer issue notices after following the provisions of law and giving an opportunity of hearing to the assessee under Section 148 of the Act. It is to be noted that CIT (Appeals) has not enhanced the income of the assessee. However, in fact he has given relief to the assessee. When at the time of giving relief, the CIT (Appeals) in the peculiar circumstances of the facts of the case has clearly seen that the case of the assessee should be covered under the provisions of Section 147 of the Act; he has given such guidance to the assessing officer to proceed u/s 147 148 of the act. Now it would be the prerogative of the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... even from the larger area of the subject matter of assessment. Such is the mandate of the honourable Gujarat High Court in 206 ITR 574. 12. The learned CIT appeal is a superior authority then the learned assessing officer and he can give any direction on the facts and circumstances of the case and in light of the provisions of the act. If the assessing officer or the assessee has any grievance the provisions are already there to file an appeal before the ITAT. But the first appellate authority has every right to correct the mistakes in the order of the assessing officer and he can give any directions in conformity with the provisions of the act. In fact it does not curtail the powers of the assessing officer but in fact it is in the conformity of the provisions of the act and guides the assessing officer for proper administration of the act. Such is the mandate of the honourable Rajasthan High Court in CIT versus Jewels emporium 257 ITR 736. 13. Further as the learned CIT A has merely gave a direction to the assessing officer , challenging the same before us is premature at this stage because we are not aware whether the learned assessing officer has initiated any action th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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