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CIT(A) cannot enhance the assessment on the matter which is not arising out of the assessment proceedings – ITAT Delhi

M/S ADMACH AUTO LIMITED, ITA NO. 9543/DEL/2019

Saravjit Bhatia vs. ITO 

ITA No. 7155/Del/2019, 

Pronounced on 16th December, 2020

In the recent case, the Hon’ble Delhi ITAT has held that “CIT(A) cannot enhance the assessment on the matter which is not arising out of the assessment proceedings. The impugned order passed by the Ld. CIT(A) is illegal and invalid and beyond the powers of the Ld. CIT(A) and is thus liable to be cancelled.”

Facts of the case : 

  1. The Ld. CIT(A) has made an addition on account of consultancy income of Rs. 43,91,000/-, which is not made by the Assessing Officer in his order.
  2. It is further stated that the Ld. CIT(A) cannot make enhancement on the issue which does not arise out of the order of the assessment. He further submitted that according to section 251(2) of the Income Tax Act, 1961, the CIT(A) cannot enhance the assessment on the matter which is not arising out of the assessment proceedings.
  3. Relied is placed on following decisions of the ITAT, Delhi Bench: a) Ramesh Kumar Pabbi vs ACIT (supra), (b) Kishore Jeram Bhai Khaniya vs ITO (supra)

To Read Complete Judgement , Saravjit Bhatia vs ITO, ITA No. 7155/Del/2019

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