CIT(A) Has Power To “Enhance The Assessment”, But He is Not Entitled To Travel Beyond Subject- Matter And Assess New Sources Of Income: ITAT Jaipur

In the case of Jagdish Narayan Sharma vs. ITO, ITAT Jaipur has held that:

The principle emerging from various pronouncements of the Supreme Court is that the first Appellate Authority is invested with very wide powers under Section 251(1)(a) of the Act and once an assessment order is brought before the authority, his competence is not restricted to examining only those aspects of the assessment about which the assessee makes a grievance and ranges over the whole assessment to correct the Assessing Officer not only regarding a matter raised by the assessee in appeal but also regarding any other matter considered by the Assessing Officer and determined in assessment. There is a solitary but significant limitation to the power of revision: It is not open to the Appellate Commissioner to introduce in the Assessment a new source of income and the assessment must be confined to those items of income which were the subject-matter of the original assessment.

To Download the Judgement, Please Click Here