Commissioner (Appeal) has powers to enhance or reduce the tax liability - discovers a source of income ?
Submitted by India Tax User on Wed, 12/31/2008 - 02:56
Can the Appellate Commissioner of Income-Tax levy additional tax if it discovers a source of income that was not taken into account by the income-tax department at the time of assessment?
Monika Bedi
The Mumbai bench of the
The Mumbai bench of the Income-Tax Appellate Tribunal (ITAT) has stated that the Commissioner (Appeals) has no powers to consider sources of income not considered by the department.
The Commissioner (Appeals) can consider only those items of income considered by the department and cannot add fresh items and go beyond the assessment order as he has no powers to make enhancement in respect of sources of income not considered by the Assessing Officer.
Thus a taxpayer need not be afraid of any such apprehensions while referring an appeal to the Commissioner (Appeals).
Ram Chandra Moda