TaxTMI 
TaxTMI 
2013 (5) TMI 278
X X X X Extracts X X X X
X X X X Extracts X X X X
....h credits and accordingly added back the same to the total income of the assessee for the following reasons: (i) The said loan has not been confirmed by the creditor. (ii) The identity of the creditor is also not established. (iii) In view of lack of acknowledgement of the said loan by the loan creditor, it is a ceased liability. (iv) The loan under consideration is appearing in the books of accounts of the assessee and has ceased as a liability in view of non-submission of confirmation. (v)The said loan was borrowed for the business purposes of the assessee. Hence, it is nothing but a benefit arising to the assessee from the business and is within the purview of section 28(iv) of the Income Tax Act, 1961. Accordingly, the said amount of Rs.15,34,000/- is added to the total income of the assessee u/s 28(iv) of the Income Tax Act, 1961. 4. On appeal, the Ld.CIT(A) directed the AO to re-open the A.Y. 2002-03 as the addition was not sustainable in the relevant year under consideration and the relevant findings are extracted hereunder:- "During the appellate proceedings the appellant has filed a confirmation letter in the name of Shri Shyam Wani, since this was nev....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ideration of the appeal only. The 'finding' should be necessary for the disposal of ground of appeal. * ITO v. Murlidhar Bhagwan Das [52 ITR 335, 343, 385)(SC)] "Section 31 prescribes the mode of disposal by an Appellate Assistant Commissioner of an appeal preferred to him: the appeal before him is certainly confined to an assessment year; after hearing the appeal, he can either confirm, reduce, enhance or annual the assessment; he can set aside the assessment and direct the Income-tax Officer to make a fresh assessment. The various sub-sections of that section describe in detail the orders or directions that can be made or issued by him in respect of various matters; but no power is conferred on him to make an order or issue directions in respect of an assessment of a year which was not the subject matter of the appeal. It may, therefore, be held, on a construction of the provisions of section 31, that the jurisdiction of the Appellate Assistant Commissioner is strictly confined to the assessment orders f a particular year under appeal". (Emphasis supplied). "....A "finding", therefore, can be only that which is necessary for the disposal of an appeal in respect of an ass....
X X X X Extracts X X X X
X X X X Extracts X X X X
....m. * Sun Metal Factory (I)(P.) Ltd v. ACIT [124 ITD 14 (Chen)] "Block period from 01.04.1990 to 03.11.2000- Whether an appellate authority can give findings and direction only in respect of year/period which is before that authority and no direction or finding can be given in respect of other years-Held, yes- Whether, therefore, where CIT(A) while hearing assessee's appeal relating to block period recorded a finding that addition made by A.O. was not based on evidence found during search, same could not enlarge scope of appeal for giving direction to A.O. to reopen assessment for A.Y. 1999-2000 particularly when A.O. himself had not chosen for reopening assessment -Held,yes." IV. By giving directions, learned CIT(A) has sought to enlarge the limitation period, which is beyond the power of appellate authority. *Rajinder Nath V.Commissioner of Income-tax(120 ITR 14 ,19)(SC) "....The expression 'finding' and 'direction' in s. 153(3) (ii) of the Act must be accordingly confined. S. 153(3)(ii) is not a provision enlarging the jurisdiction of the authority or court. It is a provision which merely raises the bar of limitation for making an assessment order under s. 143 or s....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ncome Tax Act, it is not for me to supplement the same either. I am not, therefore, inclined to consider the plea of the learned Departmental Representative that, with a view to safeguard the interests of the revenue, I must give a finding so as to enable the Assessing Officer to reopen the assessments of co- owners. I have given such findings as, in my considered view, are necessary to adjudicate on this appeal. Whether these findings necessitate or justify reopening of assessments of co-owners that is for the Assessing Officer to examine." (Emphasis supplied)." On the other hand, the Ld. DR has relied on the order of the Ld.CIT(A) in support of the revenue's case. 6. We have heard both the parties and perused the material on record. We are in agreement with the finding of the Ld.CIT(A) that the impugned addition cannot be made in the relevant year under consideration. However, we are of the view that the direction of the Ld.CIT(A) to reopen the A.Y. 2002-03 is not justified. First of all, the credit received by the assessee are as under:- Date By Bank Amount(Rs.) 08.01.2002 By Bank 1,50,000/- 08.01.2002 By Bank 5,000/- 01.02.2002 By Bank ....