TaxTMI 
TaxTMI 
2012 (10) TMI 1213
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....appeal and three additional grounds under the head "additional grounds" of appeal. 2. Briefly stated the facts of the case are that in the case of the assessee, the original assessment was made u/s. 143(3) by DCIT, Circle-3(2), Mumbai and the assessment order was passed on 30.3.1999. In that assessment, following additions were made: 1) Unaccounted Purchases - Rs. 50,00,000/- 2) Bogus work-in-progress - Rs. 1,95,000/- 3) Bogus Creditors - Rs. 1,16,73,100/- 4) Unaccounted cash credit - Rs. 1,03,593/- 3. The assessment order was assailed before the Ld. CIT(A) and CIT(A)- XLIII by his order dt. 28.2.2000 set aside the assessment for de novo consideration. The matter came back to the files of the AO and....
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....ave been made as discussed in para-3 above. 7. Let us first see what happened in the first ground of appeal. When the original assessment order was challenged before the Ld. CIT(A), the CIT(A) decided the issue as under: a) The addition of Rs. 50 lakhs : The Ld. CIT(A) at page-3 para-4 thus held "no reasoning is given by the AO to arrive at such a large amount when the total profit in the transaction is merely Rs. 2,15,329/-. It is clear that the AO has not applied his mind while making such huge additions." b) On the addition of Rs. 1,95,000/-, this is what the Ld. CIT(A) has said at page 3 para-5 of the appellate order "if at all any addition was to be made, the same should have been done in the earlier assessment yea....
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....itions, and also not confronting the assessee with the evidence regarding return of letters by the postal authorities. The learned representative of the appellant Shri Makhija CA states that the addresses of the parties had been obtained 3 years earlier and that the appellant ought to have been given an opportunity to produce the new addresses of the parties concerned. Considering the heavy additions made and the necessity for making adequate enquiries into the matter, it is considered necessary to set aside the assessment for denovo consideration. The appellant will be given reasonable opportunity of being heard and present their say in the matter." 9. A perusal of the above finding of the Ld. CIT(A) while deciding the original assessme....
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.... aside the case can give directions and lay down limits for the inquiry to be made by the assessing authority. When such a direction is made and limits are laid down, the power and jurisdiction of the assessing authority to deal with the case, after remand, depend on the specifications of the remand order, which means that the assessing officer has no jurisdiction to enter into any question which falls outside the limits laid down. 11. In the case of CIT Vs Mansa Ram and Sons (1991) 190 ITR 453 (All.) Hon'ble High Court has held that where the revisional order limits the AO's jurisdiction to make a fresh assessment with regard to only two items, the AO has no power to add other amounts or to make other additions to the assessee's income.....
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.... 40 ITR 618. No doubt in order to attract this principle, It is necessary that the order of the superior Appellate authority should be clear, certain and definite in its terms and without any ambiguity. 16. Let us now consider the above judicial discussion in the light of the order of the Ld. CIT(A) while disposing the original assessment order. A perusal of the findings of the Ld. CIT(A) clearly show that the CIT(A) was concerned with the additions made in the original assessment order. In the light of the additions made therein, the CIT(A) set aside the assessment for denovo consideration which clearly show that the directions of the Ld. CIT(A) for denovo assessment were restricted to the additions made by the AO in the original assess....
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....e powers of the CIT[A] are co=terminus with the powers of the Assessing Officer and CIT[A]can do what AO could do but has not done . However in the instant case the powers of the CIT[A] are not questioned but what has been questioned is the powers of the AO in framing a de novo assessment , when the original assessment is set aside laying down the boundaries for framing the set aside assessment . It would not be out of place to cite the decision of the Hon'ble Supreme Court in the case of Bhavna Chemicals ltd 239 ITR 507 wherein The Hon'ble Supreme Court declined to adjudge on the point of law that if the set aside assessment is made according to the directions of the ITAT it may result into enhancement of income . The Court thus Held "dism....