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2016 (1) TMI 313 - AT - Income TaxPower of the CIT(A) to enhance the assessment u/s 251 - disallowances as well as enhancement of income done by CIT(A) - DR stated that the assessee has agreed before the learned Commissioner of Income-tax (Appeals) for enhancement there is no reason in the appeal now to be filed before ITAT - Held that:- According to provisions of sub-section 2 of section 251 of the Income Tax Act, the learned Commissioner of Income-tax (Appeals) shall not enhance the assessment unless the appellant had a reasonable opportunity of showing cause against any such enhancement. On reading the order of the learned Commissioner of Income-tax (Appeals) we did not find any mention about the show cause notice issued by him giving the reasons for enhancement and the manner of determining the amount of enhancement. There is no opportunity granted to the assessee at all. According to the order of the learned Commissioner of Income-tax (Appeals), on 25.03.2015 the appellant was confronted with the remand report and learned Commissioner of Income-tax (Appeals) has passed the order on the same day. Therefore it is apparent that on 25.03.2015 the assessee was shown remand report and on the same day the appellate order was passed by the learned Commissioner of Income-tax (Appeals) enhancing the income of the assessee by ₹ 2 lacs. We also could not gather from the order of the learned Commissioner of Income-tax (Appeals) that how the sum of ₹ 2 lac was arrived at. We are not at all concerned with whether the assessee agreed with the enhancement or not. In absence of show cause notice to the assessee stating the defects , allegation and the manner of determining the amount of enhancement and then fixing the date of hearing after affording reasonable time to the assessee to rebut the allegations and then passing a speaking order making enhancement of income is mandatory. Further on the grounds raised before CIT (A) there is no finding given by him whether confirming or deleting disallowance . We are not in a position to sustain the order of CIT (A) confirming other additions as well as the amount of enhancement of ₹ 2 lac. Therefore, in the interest of justice we set aside the matter back to the file of Commissioner of Income-tax (Appeals) with a direction to pass a speaking order on each of the grounds raised following the procedure prescribed u/s 251 of the Act - Decided in favour of assessee for statistical purposes.
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