TMI Blog2020 (10) TMI 1363X X X X Extracts X X X X X X X X Extracts X X X X ..... ITO to enhance the assessment and if he failed to do so without any reasonable cause, it is open to the Revenue to file a second appeal before the Tribunal from the order passed by the Commissioner of Income-Tax (Appeals) in appeal - HELD THAT:- The Commissioner of Income-tax (Appeals) is exercising a quasi-judicial function. He should have adverted to the request made by the Income-tax Officer in his letter dated February 2, 1983, and disposed of the matter fairly and reasonably. It was his statutory duty to do so. On the other hand, he failed in his duty and disposed of the appeal even without adverting to the said request made by the Income-tax Officer. We are of the view that it is a patent jurisdictional error. CIT (Appeals) has ab ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... SUBBAROYAN For the Appellant : Mrs.R.Hemalatha, SSC For the Respondent : Ms.S.Sriranjani for Mr.G.Baskar COMMON JUDGMENT (Judgment was delivered by T.S.SIVAGNANAM,J) We have elaborately heard Mrs.R.Hemalatha, learned Senior Standing Counsel appearing for the appellant and Ms.S.Sriranjani, learned counsel appearing on behalf of Mr.G.Baskar, learned counsel accepting notice for the respondent. 2. These appeals have been filed by the Revenue under Section 260A of the Income Tax Act, 1961 (for short, the Act) challenging the common order dated 22.9.2017 made respectively in ITA.Nos.1557, 1660, 1556 and 1554/Mds/2017 on the file of the Income Tax Appellate Tribunal, Madras B Bench (for brevity, the Tribunal) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ore both the Commissioner of Income Tax (Appeals)-2, Chennai-34 [for brevity, the CIT(A)] as well as the Tribunal, which order was confirmed by us by dismissing the appeals filed by the Revenue in TCA.Nos.1030 and 1031 of 2019 dated 09.10.2020 i.e today for the assessment years 2014- 15 and 2015-16. Further, the exercise to be undertaken to decide the first substantial question of law has become academic in the assessee s case. We note that the power of the Commissioner of Income Tax (Appeals) to enhance the assessment on a reference made by the Assessing Officer in terms of Section 251(1)(a) of the Act was considered by the Tribunal in the decision in the case of M/s.A.R.Housing Private Limited Vs. ITO, Company Ward [ITA.No.623/Mds/2015 da ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dered and answered in the following terms: In the light of the above decisions, we hold that it is open to the Income-tax Officer to bring to the notice of the Commissioner of Income-tax (Appeals) any lapse or omission or error in the assessment and invite the appellate authority to exercise the power vested in him to enhance the assessment or take other steps to undo the harm or error. It is idle to contend that though the Commissioner of Income-tax (Appeals) can exercise the power to enhance the assessment even suo motu, such a power cannot be exercised when the occasion for the exercise of such power is on an alert made by the Income-tax Officer or brought to his notice by the Income-tax Officer (assessing authority). The Income-tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the Income-tax Officer. We are of the view that it is a patent jurisdicitional error. The Commissioner of Income-tax (Appeals) has abnegated in discharging the dutyjmposed on him by law. Since the Revenue was prejudiced by the failure of the Commissioner of Income-tax (Appeals) to discharge his statutory duty aforesaid, it is open to the Revenue (Incometax Officer) to file an appeal from the order passed by the Commissioner of Income-tax (Appeals) and assail the same. Against the order of the Commissioner of Income-tax (Appeals), the appeal filed by the Revenue under Section 253(2) of the Income-tax Act is competent and maintainable. We hold so. 6. As observed by us earlier, we do not propose to consider the first substantial ques ..... X X X X Extracts X X X X X X X X Extracts X X X X
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