Can CIT (A) suo moto invoke provisions of section 14A when the AO had not invoked it
Thanks in Advance
Hi,
I don't see why not. The powers of the CIT (A) are co-terminus with the powers of the AO and he enjoys the powers of enhancement- i.e. he can do everything that the AO could have done but omitted to do.
Seems pretty clear to me.
Regards,
Ashutosh.
Many Thanks Ashutosh
This issue is pending before Special Bench in the case of M/s Acquarius Travels (P) Ltd. - ITA No.260/Del/2002 A.Y. 1998 – 99
The issue could be looked upon in a different way.
The CIT(A) is in the appellate jurisdiction. He is not assessing the income but only adjudicating the income. He cannot have same powers as that of the AO. But, when the AO is debarred from re-assessing and rectifying the assessment (by way of proviso) to give effect to s. 14A, the same cannot be indirectly done by CIT(A) by resorting to s. 14A which is not invoked by the AO.
I think the applying the provisions of s. 14A would result in allowing him to do what AO cannot directly do.