TMI Blog2022 (1) TMI 875X X X X Extracts X X X X X X X X Extracts X X X X ..... rowed satisfaction. So, the directions issued by ld. CIT (A) are beyond his power conferred by section 250 of the Act. Hon ble Delhi High Court in case of Banwari Lal Sons [ 2002 (3) TMI 15 - DELHI HIGH COURT ] while deciding the identical issue held that, the appellate authority cannot extend the statutory time limit for reassessment by issuing suo motu directions illegally or unrelated to the subject matter of the appeal being decided by the ld. CIT (A) against the impugned order of rectification. In view of all since ld. CIT (A) being a statutory authority has no power to exceed his jurisdiction beyond the subject matter of the appeal being decided by him against the impugned order of rectification, the directions issued by hi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by making disallowances of ₹ 29,62,490/-. However, thereafter, AO by invoking the provisions contained u/s 154/143(3) of the Act rectified the assessment order dated 28.02.2013 by making disallowances of ₹ 44,00,000/- on account of salary paid to the partner and assessed the total income at ₹ 73,62,490/-. 3. Assessee carried the matter before the ld. CIT (A) by way of filing an appeal against the order u/s 154/143(3) of the Act who has allowed the appeal but given direction to the AO to proceed against the assessee u/s 147/148 read with section 150 of the Act. Feeling aggrieved by the directions issued by the ld. CIT (A), the assessee has come up before the Tribunal by way of filing the present appeal. 4. We have he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome of the Appellant Firm u/s 154/143(3) by adding the amount of ₹ 44,00,000/- cannot be approved. Accordingly, the addition of ₹ 44,00,000/- is hereby deleted. However, in view of the fact that the expenditure of ₹ 44,00,000/- claimed by the appellant as salary to partners was not allowable, particularly in view of the partnership deed dated 01.04.92, the Assessing Officer is hereby directed to take action u/s 147/148 read with the provisions of section 150 of the Income Tax Act, 1961. 9. Bare perusal of the directions issued by the ld. CIT (A) goes to show that when ld. CIT (A) has exercised his statutory power in deciding the issue raised by the assessee he has no power to issue directions to the AO to proceed ..... X X X X Extracts X X X X X X X X Extracts X X X X
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