TMI Blog2004 (8) TMI 347X X X X Extracts X X X X X X X X Extracts X X X X ..... . 15,000 and Rs. 5,000 were deposited out of withdrawals of Rs. 45,000 made on 9th July, 1990 and 10th July, 1990, and investment in the NSCs was made on 8th Feb., 1991, i.e., after a gap of seven months. There was no evidence that the amount withdrawn on earlier dates was available with the assessee for making investment in NSCs. The same position was found with reference to investment in PPF. Thus, the AO made an addition of Rs. 20,000 while completing the assessment on 17th July, 1992. A copy of this order is paced on pp. 5 to 8 of the paper book. 3. Aggrieved, the assessee impugned the addition of Rs. 20,000 in appeal before the CIT(A). The CIT(A) set aside the assessment and restored the issue to the file of AO on the ground that all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n the dates when the amounts were withdrawn and investment in the NSCs. Relying on the decision of Tribunal, Jaipur (SMC) Bench, in the case of Hemant Prabhakar vs. Dy. CIT 31 Tax World 198 (Jp) where the Tribunal has deleted the addition on the ground that the withdrawals shown in the cash flow statement were sufficient to cover the investment. He, therefore, submitted that the order of CIT(A) be set aside and the addition deleted. 5. The learned Departmental Representative, on the other hand, heavily relied on the orders of the authorities below. 6. We have heard both the parties and given our thoughtful consideration to the rival submissions with reference to facts, evidence and material on record. From the facts discussed above, it ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it was found that these confirmations did not contain any information about the source of such deposit (i) Rs. 15,000 on account of low withdrawals for household expenses; and (ii) Rs. 5,000 being unexplained savings. 8. The assessee submitted the reply. However, the learned CIT(A) was not satisfied with the reply and made an addition of Rs. 30,000 being unexplained cash credits in the name of two persons. He also made an addition of Rs. 5,000 being unexplained savings and addition of Rs. 15,000 being inadequate withdrawals for household expenses. While doing so, the learned CIT(A) further observed that the assessee had constructed the house property in 1993. The construction went upto the asst. yr. 1994-95. He directed the AO to in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... , the learned counsel for the assessee submitted that the first appellate authority has plenary powers in disposing of an appeal. The scope of his power is co-terminus with that of the ITO. He could do what the ITO can do and can also direct him to do what he has failed to do. He further relied on the judgment of the Hon ble Supreme Court in the case of Jute Corporation of India Ltd. vs. CIT (1990) 88 CTR (SC) 66 : (1991) 187 ITR 688 (SC) where the Hon ble Supreme Court has again expressed the opinion that the appellate authority has all the powers which the AO may have, subject to the restriction or limitation. He also relied on the judgment of the Hon ble Calcutta High Court in the case of CIT vs. Ganga Jamuna (1986) 52 CTR (Cal) 202 : (1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rival submissions with reference to facts, evidence and material on record. We have also carefully gone through the orders of the authorities below. From the facts discussed above, it is obvious that the only issue raised before the first appellate authority against the original assessment order related to addition of Rs. 20,000 being unexplained investment in NSCs and PPF. This issue was set aside and restored to the file of AO after allowing proper opportunity to the assessee. Thus, the scope of powers of the AO was limited to the issues restored to his file. He could have not travelled beyond the directions of the CIT(A) and raked up the issue which stood already concluded or any new issue. Such power is not vested with the AO at the ti ..... X X X X Extracts X X X X X X X X Extracts X X X X
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