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2014 (9) TMI 574 - HC - Income TaxPower of CIT(A) to enhance the income - Claim for deduction of loss disallowed – Notice u/s 251 not issued - Whether it was competent for the Commissioner to have fastened a higher liability upon the assessee than the one imposed under the order of assessment – Held that:- The grievance of the assessee was mostly in relation to the disallowance of deduction of loss to have been incurred in the Saw Mill business for particular AYs - The Commissioner is conferred with the power not only to confirm the order of assessment or reduce the tax liability but also to enhance such liability or annul the very assessment - the Commissioner made certain observations, as to why the grievance of the assessee cannot be said to be genuine - Had he stopped at that and dismissed the appeals, there would not have been any other complications - he proceeded to issue certain directions, which are certainly detrimental to the interest of the appellant - He could have done that only after issuing a notice u/s 251(2) - Since no such notice was issued, the order dated 13.03.1997 passed by the Commissioner suffered a serious illegality and it is contrary to Section 251(2) of the Act – thus, the order of the Commissioner is set aside and the matter is remitted back to the Commissioner for fresh adjudication – Decided in favour of assessee.
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