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2022 (1) TMI 875 - AT - Income TaxReopening of assessment u/s 147 - Whether CIT (A) has erred on law and facts by exceeding statutory powers in directing the AO to proceed u/s 147/148 read with section 150 of the Act against the assessee? - HELD THAT:- Because a cursory reading of sections 147/148 of the Act makes it clear that power u/ss 147/148 conferred by the Act on AO are to be used by him independently only if he has reason to believe that any income and also other income chargeable to tax has escaped assessment for the year under consideration. AO is not obliged to proceed on the basis of directions issued by his higher authority which would otherwise amounts to borrowed satisfaction. So, the directions issued by ld. CIT (A) are beyond his power conferred by section 250 of the Act. Hon’ble Delhi High Court in case of Banwari Lal & Sons [2002 (3) TMI 15 - DELHI HIGH COURT] while deciding the identical issue held that, “the appellate authority cannot extend the statutory time limit for reassessment by issuing suo motu directions illegally or unrelated to the subject matter of the appeal being decided by the ld. CIT (A) against the impugned order of rectification. In view of all since ld. CIT (A) being a statutory authority has no power to exceed his jurisdiction beyond the subject matter of the appeal being decided by him against the impugned order of rectification, the directions issued by him are not sustainable, hence set aside. However, concerned AO is at liberty to proceed against the assessee if so desires only in accordance with the provisions contained u/s 147/148 of the Act. Resultantly, the appeal filed by the assessee is hereby allowed.
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