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2024 (2) TMI 486 - AT - Income TaxCIT(A) power of enhancement u/s 250 and 251 - change of section - Addition u/s 68 v/s 69A - CIT(A) has applied and confirmed the impugned addition u/s 69A as against section 68 under which the Ld. AO - assessee received money in the form of loan through cheque with the addendum ‘after giving cash’ for which there is no evidence at all - objection raised by the assessee that the creditors have not been examined in this regard has been over ruled by the Ld. CIT(A) by stating it to be ‘baseless’ - HELD THAT:- It is revealed from the appellate order that the Ld. CIT(A) has placed reliance on the decision of Kanpur Coal Syndicate [1964 (4) TMI 18 - SUPREME COURT] wherein no doubt held that the powers of Ld. CIT(A) are wide being coterminus with those of the Ld. AO, but the Ld. CIT(A) failed to notice that it was so that he [Ld. CIT(A)] could entertain issues which had not been examined by the Ld. AO. In the case before us, Ld. AO examined the issue thoroughly and thereafter applied the provisions of section 68 of the Act for making the impugned addition. In our humble opinion, the Ld. CIT(A) misdirected himself in relying on the decision (supra) of the Hon’ble Supreme Court. The same issue namely whether the first appellate authority has power to take into account a new source of income came up for consideration again for fresh adjudication before the full bench in CIT vs. Sardari Lal & Co. [2001 (9) TMI 1130 - DELHI HIGH COURT] wherein Hon’ble Delhi High Court gave its verdict in favour of the assessee observing that it is unconceivable that in the presence of specific provision u/s 147/148 and 263 of the Act, a similar power is available to the first appellate authority. Decided in favour of assessee.
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