Tribunal has no power to enhance assessment

When the Income Tax Tribunal remands an issue back to the AO for fresh adjudication – the AO – should keep in mind that he has no power to enhance the assessment already framed, since the Tribunal has no power to enhance the income-

SANMAR SPECIALITY CHEMICALS LTD. vs. INCOME TAX

OFFICER – HIGH COURT OF MADRAS – Tax Case (Appeal) No. 885 of 2008 – Date of Decision 4th April, 2018

Appeal (Tribunal)—Powers of Tribunal—Enhancement in income—There is no error in the order passed by the Tribunal in remanding the matter for fresh consideration to the AO—But, however, the counsel for the assessee pointed out that the observations and directions issued by the Tribunal are incorrect—In any event, the Tribunal has no power under the IT Act to enhance the assessment in an appeal—Equally, it cannot be done on an order of remand being passed by the Tribunal to the AO—Therefore, AO, while reconsidering the matter on remand, should bear the above legal principle in mind and the assessee cannot be denied whatever benefit he has granted in the Assessment Order—MCORP Global (P) Ltd. vs. CIT (2009) 222 CTR (SC) 110 : (2009) 19 DTR (SC) 153 : (2009) 309 ITR 434 (SC), Hukumchand Mills Ltd. vs. CIT (1967) 63 ITR 232 (SC) and Fidelity Shares & Security Ltd. vs.

Dy. CIT (2017) 390 ITR 267 (Guj) followed