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Section 251 of the Income-tax Act, 1961 - Commissioner (Appeals) - Powers of - Whether Commissioner (Appeals) while adjudicating an appeal under section 251 has wide powers and he can set aside an assessment and can remand same for fresh decision by Assessing Officer - Held, yes FACTS Pursuant to a search conducted in the hospital premises of the assessee under section 132, a diary and other records were seized which revealed certain expenditure from undisclosed sources. The Assessing Officer, accordingly, made an addition of Rs. 48,891. On appeal, the Commissioner (Appeals) while remanding the issue back to the Assessing Officer, directed him that in case he came to the conclusion that the sources of expenses remained unexplained, the Assessing Officer would also consider similar expenses likely to have incurred by the assessee for the period not covered in the seized diary but covered for the assessment year in question. On second appeal, the Tribunal modified the direction of the Commis-sioner (Appeals) to the effect that the addition, in any case, on that account, should not exceed the addition originally made. On reference : HELD A careful reading of the provision of section 251 would show that the Commissioner (Appeals) while adjudicating an appeal under section 251 has wide powers and he can set aside an assessment and can remand the same for fresh decision by the Assessing Officer. [Para 5] In view of the consistent interpretation of section 251 by various High Courts and the law laid down by the Supreme Court in CIT v.Kanpur Coal Syndicate [1964] 53 ITR 225 , it was clear that the Tribunal was in error while giving a direction that the Assessing Officer should not make an addition exceeding the addition originally made. [Para 9] CASES REFERRED TO S.R. Kalani v. CIT [1979] 120 ITR 163 (MP) [Para 3], CIT v. Devichand Pan Mal [1986] 160 ITR 545 / 24 Taxman 663 (Raj.) [Para 3], Amin Chand & Sons v. CIT [1982] 133 ITR 439/[1980] 4 Taxman 542 (Punj. & Har.) [Para 3] and CIT v. Kanpur Coal Syndicate[1964] 53 ITR 225 (SC) [Para 8]. Rajesh Bindal for the Appellant. JUDGMENT Ajay Kumar Mittal, J. - At the instance of the Revenue, the Income-tax Appellate…

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