CIT(A) Cannot Enhance on New Issue; JDA Additions & U/s 2(22)(e) Deletions Upheld

Skyline Greathills Vs DCIT (ITAT Mumbai) CIT(A) Cannot Enhance on New Issue; JDA Additions & U/s 2(22)(e) Deletions Upheld In this cross-appeal, the ITAT dealt with three major issues—(i) enhancement by CIT(A), (ii) deemed dividend u/s 2(22)(e), and (iii) addition on JDA valuation. 1. Enhancement by CIT(A)- Held Invalid The CIT(A) reduced WIP by ~₹11.97 crore on the ground that income disclosed during survey was neutralized by capitalization. However, the ITAT held that CIT(A) cannot enhance income by introducing a new issue/source not examined by the AO, as per settled law (Shapoorji ...