TMI Blog2011 (2) TMI 281X X X X Extracts X X X X X X X X Extracts X X X X ..... o the said assessees whose cases have been referred by the ld. CIT(A) - Cross Objections by the assessees are partly allowed whether it is open to an assessee, who was in appeal before a competent Tribunal, to contend that in the appeal preferred by them, in respect of money transferred by them to another assessee, CIT(A) could not have made any observations in respect of that other assessee - The legal position in the proceedings between the parties, who are in appeal before the Tribunal or Court, is that the Court addresses itself to the issues, which are before it and confines its exercise of jurisdiction to those grounds, which can result in deciding the appeal - the provisions of section 153C of the Act would not apply - Even if the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... since Mandi Samiti has no control over its expenditure. One of the amounts transferred was vikas cess, which was collected and transferred to the Parishad by the assessee-respondent. The Assessing Officer held that the assessee has no authority to check utilization of this development fund in the hands of the Mandi Parishad, and as such added the amount to the total income of the assessee. Similarly, another amount transferred to the Mandi Parishad was disallowed and added to the income of the assessee. 3. The assessee preferred an appeal. The appeal amongst others was in respect of the two amounts transferred to the Mandi Parishad, firstly as an 'administrative expense' and secondly as 'vikas cess'. The CIT(A) found that the ground ta ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he hands of Mandi Parishad. 4. Aggrieved by these observations, the assessee approached ITAT, Lucknow Bench on various grounds including on the following observations : ". . . . This treatment of receipts by Mandi Parishad is not in consistency with the Accounting Principles. Payments treated as expenditure or application by Mandi Samitis have to be treated as business receipt by Mandi Parishad. The Parishad cannot treat it as liability, as these receipts are firstly, non-voluntary contribution by Samitis, and secondly, non-refundable." and in respect of the direction issued to the Assessing Officer, which reads as under : "In view of this, the Assessing Officer is directed to make a reference to the Assessing Officer of Mandi Par ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ility in the hands of Mandi Parishad. It has been informed that Vikas Cess collected by the Samitis and transferred to Mandi Parishad is not credited by the Mandi Parishad to its income and expenditure Account but directly credited to Cess Fund (Central mandi fund). The rest of the receipts from the Mandi Samitis are also treated by the Parishad as liabilities and directly credited in the Balance Sheet under Mandi Vikas Nidhi. This treatment of receipts by Mandi Parishad is not in consistency with Accounting Principles and treatment by Mandi Samiti. Payment treated as expenditure or application by Mandi Samitis has to be treated as business receipt by Mandi Parishad. The Parishad cannot treat it as liability as these receipts are firstly no ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ) are unnecessary because the facts of the case which is pending for adjudication are only to be considered. However, in the instant case, neither the material facts relating to other issues were available to the ld. CIT(A) nor opportunity of being heard was given to the said assessees whose cases have been referred by the ld. CIT(A). We, therefore, modify the order of the ld. CIT(A) to this extent that the impugned observations made by him are unwarranted in the case of present assessees. Accordingly, the Cross Objections by the assessees are partly allowed." Based on the view already taken, the grounds raised by the assessee on these counts were allowed. 6. The question for our consideration would be whether the Tribunal was right in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... deciding the appeal. In such proceedings and considering the very nature of the jurisdiction exercised by Tribunal or Court, is it open to the Tribunal or Court to issue a direction against a party, who is not before it. The power of the Appellate Authority is normally co-extensive with that of the Original Authority. In the absence of any power in the Assessing Authority, it would not be open to the Appellate Authority to exercise a jurisdiction, which the Assessing Officer did not have. Learned counsel for the revenue has not been able to point out to us any provision, whereby the Assessing Officer in the course of proceedings for assessment can issue such directions. There is no dispute that certain, moneys were transferred by the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X
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