TMI Blog2011 (2) TMI 1600X X X X Extracts X X X X X X X X Extracts X X X X ..... zure operations u/s 132 of the Act were conducted on 17.3.2006. In response to a notice issued u/s 153A of the IT Act, the return of income was filed on 11.8.2006 declaring income of ₹ 1,23,710/-. AO determined the total income of the assessee at ₹ 10,66,358/- by making addition of ₹ 9,36,509/- on account of unexplained expenses in stock and ₹ 6,139/- towards car expenses. Upon assessee s appeal, the addition made by the AO was deleted by the CIT(A). However, learned CIT(A) noted that in the expenditure incurred on various projects on hand, the assessee company has also claimed ₹ 5,51,052/- under administrative and other expenses as well as interest of ₹ 9,31,758/-. Learned CIT(A) observed that assessee h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the AO, the jurisdiction to deal with the same in appropriate case may be dealt with u/s 147/148 and Section 263 if requisite conditions are fulfilled. It is inconceivable that in the presence of such specific provisions, a similar power is available to the first appellate authority i.e. CIT(A). Therefore, CIT(A) had no power to tax a new source of income. Relying upon this case law, learned counsel for the assessee contended that the action of CIT(A) is totally against this case law expounded by the Jurisdictional High Court. 5. Learned DR, on the other hand, submitted that this case law is not at all applicable on the facts of this case inasmuch as it is the same source of income from which addition had been suggested by the learned CIT( ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . 1.4.2004. He claimed that assessee s assessment year is 2001-02 and therefore, it is not hit by the said proviso. 9. We have carefully considered the submissions. We find that the question here is not interest on capital borrowed. Rather, the question is of interest to be allocated to the stocks and that the sales made during the year. We do not find any cogency in this line of argument of the assessee. 10. Lastly, the learned counsel for the assessee has submitted that no opportunity has been given to the assessee with respect to this enhancement made by the learned CIT(A) nor any notice in this regard has been issued to him. 11. We have carefully considered the submissions in this regard. We find considerable cogency in the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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