Dismissing the appeal of the revenue , the Court held that ; in appeal arising out of order imposing penalty, matter pertaining to some other income escaping assessment does not fall within purview of expression ‘any matter arising out of proceedings in which order appealed against was passed’ in Explanation to S. 251 of the Act. Accordingly the direction issued by the CIT(A) to the Assessing Officer for exploring the addition in assessment which was quashed by the Tribunal is up held .( AY.2007 -08 to 2009 -10)
PCIT v. KPC Medical College & Hospital. (2018) 257 Taxman 159 (Cal)( HC) Editorial: Order in KPC Medical College & Hospital v. Dy. CIT (2015) 172 TTJ 204 ( Kol) (Trib) is affirmed .
S. 251 : Appeal – Commissioner (Appeals) – Power of enhancement -In penalty appeal the CIT(A) cannot issue direction to the Assessing Officer for exploring the addition in assessment . [ S.271(1) (c )]