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| The Tax Publishers2019 TaxPub(DT) 5836 (All-HC) : (2020) 313 CTR 0445 : (2019) 267 TAXMAN 0631 INCOME TAX ACT, 1961
Section 251
CIT(A) deleted addition made by AO and made two additions of labour charges and sundry creditors on the basis of the profit and loss account, and balance-sheet filed by assessee along with his return. Accordingly, there was no new source of income as claimed by assessee and addition was made from the return so submitted by the assessee itself. Therefore, order of Tribunal did not warrant any interference and appeal of assessee was dismissed.
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Appeal [CIT(A)] - Power of CIT(A) - New addition made on the basis of balance-sheet and P&L A/c filed along with return - Assessee alleging CIT(A) to have discovered new source of income
CIT(A) deleted addition made by AO and made two additions of the labour charges and sundry creditors and enhanced assessment. Tribunal confirmed this. Assessee challenged order of ITAT by way of appeal before High Court contending that CIT(A) while exercising power of enhancement under section 251 could not consider new source of income which was not dealt with by AO.Held: CIT(A) deleted addition made by AO and made two additions of the labour charges and sundry creditors on the basis of the profit and loss account, and balance-sheet filed by assessee along with his return. Accordingly, there was no new source of income as claimed by assessee and addition was made from the return so submitted by the assessee itself. Therefore, order of Tribunal warranted no interference and appeal of assessee was dismissed.
Distinguished:CIT v. Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) : 1962 TaxPub(DT) 283 (SC) and CIT v. Sardari Lal & Co. (2001) 251 ITR 864 (Del) (FB) : 2001 TaxPub(DT) 1617 (Del-HC).
REFERRED :
FAVOUR : Against the assessee.
A.Y. :
IN THE ALLAHABAD HIGH COURT
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