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Tax Publishers Disallowance of expense converted into an addition of "income" by CIT(A) - Sustainability *Facts:* Assessee had disallowance of certain expenses on which he appealed to CIT(A). CIT(A) converted another deposit into income and made additions thereto. On appeal - Held in favour of the assessee that CIT(A) does not have powers to make additions of a new income. *Applied:* Rai Bahadur Hardutroy Chamaria (1967) 66 ITR 443 (SC) : 1967 TaxPub(DT) 0347 (SC) Sardari Lal & Co. (2001) 251 ITR 864 (Del HC) : 2001 TaxPub(DT) 1617 (Del-HC) Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) : 1962 TaxPub(DT) 0283 (SC) "whenever the question of taxability of income from new source of income is concerned, which had not been considered by the Assessing Officer, jurisdiction to deal with the same in appropriate cases may be dealt with under section 147/148 of the Act and under section 263. It is unconceivable that in the presence of such specific provisions a similar power is available to the first appellate authority". *Case:* Taiyab Chaudhary v. ITO 2023 TaxPub(DT) 3509 (Del-Trib)

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Disallowance of expense converted into an addition of "income" by CIT(A) - Sustainability

Facts:

Assessee had disallowance of certain expenses on which he appealed to CIT(A). CIT(A) converted another deposit into income and made additions thereto. On appeal -

Held in favour of the assessee that CIT(A) does not have powers to make additions of a new income.

Applied:

Rai Bahadur Hardutroy Chamaria (1967) 66 ITR 443 (SC) : 1967 TaxPub(DT) 0347 (SC)

Sardari Lal & Co. (2001) 251 ITR 864 (Del HC) : 2001 TaxPub(DT) 1617 (Del-HC)

Shapoorji Pallonji Mistry (1962) 44 ITR 891 (SC) : 1962 TaxPub(DT) 0283 (SC)

"whenever the question of taxability of income from new source of income is concerned, which had not been considered by the Assessing Officer, jurisdiction to deal with the same in appropriate cases may be dealt with under section 147/148 of the Act and under section 263. It is unconceivable that in the presence of such specific provisions a similar power is available to the first appellate authority".

Case: Taiyab Chaudhary v. ITO 2023 TaxPub(DT) 3509 (Del-Trib)