Rajasthan H.C : The AO was bound by the direction given by the CIT(A) in its appellate order while setting aside the assessment order for fresh consideration

High Court Of Rajasthan : Jaipur Bench

CIT vs. Jewels Emporium

Sections 260A

Asst. Year 1988-89

Y.R. Meena & A.C. Goyal, JJ.

IT Appln. No. 37 of 2001

24th January, 2002

Counsel Appeared

J.K. Singhi, for the Applicant

JUDGMENT

BY THE COURT :

Heard the learned counsel for the Department. In the first question, the issue pertains to as to whether the Tribunal was justified in holding that the AO was bound by the direction given by the CIT(A) in its appellate order while setting aside the assessment order for fresh consideration.

The CIT(A) is always superior authority and it can give any direction on the facts and circumstances of the case and in the light of the provisions of the Act. If the AO or assessee has any grievance, the provisions are already there in the Act to file an appeal before the Tribunal. Thus, no substantial question of law arises.

In the second question, the issue raised is that if the CIT(A) is given power for directions to the AO, that curtails the power of the AO under s. 143(3) or 144 of the IT Act, 1961.

The issue raised is also baseless. In the scheme of the Act when the CIT(A) is the appellate authority, it has every right to correct the mistakes in the order of the ITO and the CIT(A) can give any direction in conformity with the provisions of the Act. That does not curtail the power of the AO rather that is in conformity with the provisions and scheme of the Act. Thus, no substantial question of law arises.

In question No. 3, the issue raised is that the Tribunal has wrongly deleted the addition of Rs. 23,275, though the necessary evidence was not produced as to whether the addition was justified or not. When the finding of fact by Tribunal is not perverse, it cannot be challenged in appeal under s. 260A of the Act 1961. It is basically a question of fact and not a question of law. Thus, there is no justification to admit the appeal on the basis of this question also.

In the result, the appeal stands dismissed at admission stage.

[Citation : 257 ITR 736]

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