TaxTMI 
TaxTMI 
TaxTMI 
2017 (2) TMI 590
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....re heard together, therefore, for the sake of convenience a common and consolidated order is being passed. 4. The assessee has taken various grounds of appeals. For the sake of convenience the grounds of appeal in ITA No.547(Asr)/2015 for Asst. Year:2007-08 are reproduced herein below. (1) That on the facts and in the circumstances of the case and in law, the learned CIT(A) erred in issuing the alert to the AO to take cognizance of the assessee losing its status of "trust" and the income accruing thereof becoming the right of two individuals as a consequence of the decision of the Additional Civil Judge, Chandigarh and take consequential actions/remedies should it be considered appropriate. Even the CIT(A) has not mentioned under which p....
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....ile allowing relief to the assessee, the ld. CIT(A) vide para-14 has noted as under.. "14. It is considered appropriate, before parting, to issue an alert to the Assessing Officer to take cognizance of the appellant entity losing its status of 'trust' and the income accruing thereof becoming the right of two individuals as a consequence of the decision of the Additional Civil Judge, Chandigarh and take necessary consequential actions/remedies, should it be considered appropriate." 7. Aggrieved with the above notings in para-14, the assessee is in appeal before us. 8. At the outset, the ld. AR invited our attention to the powers of Income Tax Commissioner (Appeals) U/s 251(1) of the Act and he submitted that the powers of the ld....
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....the following powers- (a)****** (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. From the above provisions, we find that while dealing with the penalty matters, the ld. CIT(A) has limited powers by which he may confirm or cancel such penalties or may reduce or enhance such penalty. No other power has been mentioned in the said section. The Hon'ble High Court of Allahabad has considered the similar issue and has held that appellate Assistant Commissioner had no jurisdiction to make the direction of the kind that he made in the appellate order. The findi....
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....puty Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals (1) In disposing of an appeal, the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals ) shall have the following powers (a) in an appeal against an order of assessment, he may confirm, reduce, enhance or annul the assessment ; or he may set aside the assessment and refer the case back to the AO for making a fresh assessment in accordance with the directions given by the Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) and after making such further enquiry as may be necessary, and the AO shall thereupon proceed to make such fresh assessment and determine, where necessary, the amount of tax payable on the ....
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.... 251(l)(a) or (b). He may set aside the order appealed against and order remit or make further directions or pass such other order which will meet the ends of justice. Section 251 deals with the powers of the first appellate authority in different situations. Whereas, in cases coming under section 251(l)(a)-appeal against an order of assessment and cases other than appeals against assessment and penalty the first appellate authority can pass any order as he thinks fit, in the appeals against orders imposing penalties, the power of the first appellate authority is circumscribed or confined within limits. He can only confirm or cancel such order or vary it either enhancing it or reducing it. It is not open to the first appellate authority to ....