TMI Blog2017 (2) TMI 590X X X X Extracts X X X X X X X X Extracts X X X X ..... had deleted the penalties in these orders. The powers of CIT(A), while disposing of the appeals relating to penalties are contained in Sec.251(1)(b) of the Act. While dealing with the penalty matters, the ld. CIT(A) has limited powers by which he may confirm or cancel such penalties or may reduce or enhance such penalty. No other power has been mentioned in the said section. The Hon'ble High Court of Allahabad in Commissioner Of Income-Tax, Uttar Pradesh Versus Rameshwardas Ram Narain [1974 (12) TMI 12 - ALLAHABAD High Court ] has considered the similar issue and has held that appellate Assistant Commissioner had no jurisdiction to make the direction of the kind that he made in the appellate order. - Decided in favour of assessee - I.T ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... earned C1T(A) erred in giving the above directions in Ground of Appeal No. 1 as the decision of the Additional Civil Judge, Chandigarh has since been stayed by the District Judge, Chandigarh and is still in force. So, is beyond his power and is pre-mature. Even some appeals against this order are pending in the Hon'ble High Court. (3) That on the facts and in the circumstances of the case and in law, the learned C1T(A) erred in giving the above direction in Ground of Appeal No. 1 as the writ petition stand admitted against rejection of application for registration of charitable trust by the department and is still pending in the Hon'ble High Court. So, the directions are beyond his power and are pre-mature. (4) That any o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Act and as per the provisions of this section, the ld. CIT(A) has powers to confirm or cancel the penalty or to enhance or reduce the penalty. He submitted that other than this power ld. CIT(A) has no power while disposing of the penalty appeal. Reliance in this respect was placed on the following case laws: (i) CIT Vs. Rameshwardas Ram Narain 107 ITR 710 (All). (ii) CIT Vs. Eminent Enterprises 201 ITR 766 (Ker). (iii) CIT Vs. Gedore Tools (P) Ltd. 238 ITR 268 (Del). (iv) Mrs. Banoo E Cowasji vs. CIT 138 ITR 686 (MP). Therefore, it was prayed that the para-14 of ld. CIT(A)'s order be cancelled. 9. The ld. DR, on the other hand, heavily placed his reliance on the order of authorities below. 10. We have h ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and in the circumstances of the case, the Tribunal was right in canceling the direction of the Appellate Assistant Commissioner in his order against the penalty imposed under section 28(l)(c) Section 31(3)(f) of the Act confers appellate jurisdiction with regard to an order under section 28. Under it there is no power of making direction of the kind the Appellate Assistant Commissioner has done in the present case. In the next place, the Income-tax Officer cannot, in law, proceed for imposition of penalty under section 28(l)(c) merely because the Appellate Assistant Commissioner gives a direction in this regard. If in law he did not have any jurisdiction to take any further action he cannot validly take such action. The direction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... er imposing a penalty, he may confirm or cancel such order or vary it so as either to enhance or to reduce the penalty ; (c) in any other case, he may pass such orders in the appeal as he thinks fit. (2) The Deputy Commissioner (Appeals) or, as the case may be, the Commissioner (Appeals) shall not enhance an assessment or a penalty or reduce the amount of refund unless the appellant has had a reasonable opportunity of showing cause against such enhancement or reduction. Section 251(l)(a) deals with the power of the first appellate authority in disposing of an appeal against an order of assessment. The appellate authority may confirm, reduce, enhance or annul an assessment. He may also set aside the assessment and refer th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a remit or to give any direction as done in the instant case. This section is similar to section 31(3)(f) of the Indian Income-tax Act, 1922. Construing section 31 (3)(f) of the Indian Income-tax Act, 1922, a Bench of the Allahabad High Court in CIT V/s. Rameshwardas Ram Narain (1977) 107 ITR 710 held that there is no power in the first appellate authority to give a direction to take fresh action in accordance with law. In other words, the first appellate authority in the cases governed by section 31 (3)(f) of the Indian Income-tax Act, 1922, corresponding to section 251(l)(b) of the Income-tax Act, 1961, cannot set aside the order appealed against and order a remit or give further directions in that behalf. In this perspective, the Tribuna ..... X X X X Extracts X X X X X X X X Extracts X X X X
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