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2019 (3) TMI 532 - AT - Income TaxPower of CIT(A) u/s 251 to give direction to reopen the assessment - Can CIT(A) set aside the assessment framed u/s 153C - scope of section 150(1) - allegation of accommodation entries provided by the appellant - HELD THAT:- Before the amendment by Finance [No. 2] Act, 2014 the provisions of section 251 empowers the appellate authority in an appeal against the order of assessment to confirm, enhance or annul the assessment. Before 1.6.2001, there was one more power and the same reads as under - “Or he may set aside the assessment and refer the case back to the AO for making fresh assessment in accordance with the directions.” The CBDT in its Circular has also clarified that the power of the appellate commissioner does not include the power to set aside the assessment. In our considered opinion, action of the first appellate authority has no sanction of law as powers of the CIT(A) have been set out in section 251 of the Act. The CIT(A) has more power to send the matter back to the file of the AO for making fresh decision on the issue. Once the assessment order was quashed the CIT(A) has transgressed the power given to him u/s 251(1) of the Act by giving direction to the AO to take action u/s 147/148 of the Act. Such directions are uncalled for and deserve to be expunged from the findings of the first appellate authority. We accordingly direct the AO to read the order of the first appellate authority without direction to take action u/s 147/148 of the Act. Decided in favour of assessee.
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