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2017 (3) TMI 953 - AT - Income TaxEstimation of income u/s 144 by invoking provisions of section 44AD and 44AF - books of accounts were rejected - Power of CIT(A) to delelete the additions - Held that:- We find that A.O. has mentioned several factors including non-compliances by the assessee. He has issued letters to 12 parties. Out of that only four have responded, wherein a lot of discrepancies have been noted. No where in the assessment order the A.O. has mentioned the provisions of section 44AD or section 44AF. In these circumstances in our considered opinion Ld. CIT-A’s is order reflects a lack of applications of mind on the issue involved. He has proceeded to mention that A.O. had invoked provisions of section 44AD and section 44AF which is a totally wrong fact. The Ld. CIT-A has observed that assessee has not been granted opportunity to rebut the confirmations received from the parties. This also Ld. CIT-A has found to be a reason to set aside the order’s of the A.O. We find that the powers of the Ld. CIT-A are coterminous with that of the A.O. further, more as held in the case of Kapoorchand Shrimal [1981 (8) TMI 2 - SUPREME Court ] it is the duty of the appellate authority to correct the errors in the order’s of the authorities below and remit the matter to them if needed with necessary directions. Hence Ld. CIT-A’s action in this regard is not correct. The issues raised in this appeal need to be remitted to the file for the Ld. CIT-A. Ld. CIT-A is directed to consider the issue afresh after properly appreciating the facts and pass a speaking order after giving the assessee adequate opportunity of being heard. Appeal of revenue allowed for statistical purposes.
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