TMI Blog1992 (6) TMI 20X X X X Extracts X X X X X X X X Extracts X X X X ..... assed by the Appellate Assistant Commissioner in any way infirm or liable to be interfered with by the Appellate Tribunal ? " The respondent is an assessee to income-tax. For the year 1976-77, the Income-tax Officer, by order dated March 18, 1981, levied a penalty of Rs. 39,480 on the respondent-assessee under section 271(1)(a) of the Incometax Act. In the appeal, the Appellate Assistant Commissioner of Income-tax, by order dated December 30, 1983, set aside the order of penalty with direction to the Income-tax Officer to pass a fresh order, after giving an opportunity to the assessee of being heard. In second appeal, at the instance of the assessee, the Tribunal set aside the order of the Appellate Assistant Commissioner and deleted the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of the Income-tax Act deals with the powers of the first appellate-authority. It is as follows : "251. Powers of the Deputy 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 Assessing Officer 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 nece ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e thinks fit. Normally, very wide discretion or jurisdiction is conferred on the first appellate authority under section 251(1)(c) in cases not coming under section 251(1)(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(1)(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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ns. The order passed by the Tribunal interfering with the order passed by the Appellate Assistant Commissioner dated December 30, 1983, is valid and justified. We answer question No. 2 in the affirmative, against the Revenue and in favour of the assessee and hold that the order of the Appellate Assistant Commissioner was infirm and that he has no power to set aside an order levying penalty with a direction to pass fresh orders. Both the questions are answered against the Revenue and in favour of the assessee. The income-tax reference is disposed of as above. A copy of this judgment under the seal of this court and the signature of the Registrar will be forwarded to the Income-tax Appellate Tribunal, Cochin Bench. - - TaxTMI - TMITax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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