CIT(A) cannot enhance assessment on a ground that is not a subject of rectification order

Ahmednagar Investments Pvt. Ltd. Vs DCIT (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai recently delivered a crucial verdict in the case of Ahmednagar Investments Pvt. Ltd. Vs DCIT. The ruling clarified the powers of Commissioner of Income Tax (Appeals), or CIT(A), in enhancing an assessment that is not a subject of a rectification order under section 154 of the Income Tax Act, 1961. The ITAT, noted that the CIT(A)’s powers to enhance an assessment are not unlimited. In the context of rectification proceedings under section 154, the ITAT clarified that the CIT(A) cannot in...