Hyderabad Metropolitan Water Supply & Sewerage Board V. The Additional Commissioner of Income Tax Range-6, Hyderabad

ITTA/390/2013

AI Insights

The case involves the Hyderabad Metropolitan Water Supply & Sewerage Board as the appellant and the Additional Commissioner of Income Tax Range-6, Hyderabad as the respondent. The appeal was against the judgment and order of the Income Tax Appellate Tribunal, which had remanded the case to the Commissioner of Income Tax (Appeals) without making a definitive decision. The appellant raised several questions regarding the validity of the initiation of proceedings under section 147 of the Income Tax Act and the application of provisions related to the written down value (WDV) of assets. The High Court found that the Tribunal's decision to remand the case was justifiable and did not admit the appeal, emphasizing that the Tribunal had no power to remand the matter but could do so on just and reasonable grounds.

• Counselvise Citation: [2013] 140 COUNSELVISE.COM (IT) 796366 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 01-10-2013
• Assessment Year: misc
• Other Referred Cases: Indian & Eastern News Paper Society vs. 119 ITR 996, PVS Beedies vs. 237 ITR 13
• Laws Referred To: Income Tax Act
• Result in Favour of: Revenue
• Court: HIGH COURT
• Assessee Lawyers: K VASANT KUMAR
• Keywords: Grants; Income tax appellate tribunal; Initiation of Proceedings; Remand; WDV; Internal audit objection
• Section: 147; 43(6)

Judgement Text

"IN THE HIGH COURT OF JUDICATURE, ANDHRA PRADESH AT HYDERABAD THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE K.C. BHANU I.T.T.A. No. 390 of 2013 DATE: 01.10.2013 Between: Hyderabad Metropolitan Water Supply & Sewerage Board, Hyderabad. … Appellant And The Additional Commissioner of Income Tax Range-6, Hyderabad. … Respondent This Court made the following: THE HON’BLE THE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND THE HON’BLE SRI JUSTICE K.C. BHANU I.T.T.A. No. 390 of 2013 JUDGMENT: (Per the Hon’ble the Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is preferred against the judgment and order dated 16.08.2012 passed by the learned Tribunal in I.T.A.No.2047/Hyd/2011 and sought to be admitted on the following suggested questions of law. 1. On the facts and in the circumstances of the case, whether the order of the Income Tax Appellate Tribunal is not perverse in referring to a decision of Supreme Court that is not applicable on facts and holding that initiation of proceedings u/s. 147 of Income Tax Act is valid? 2. On the facts and in the circumstances of the case, whether the Income Tax Appellate Tribunal is correct in law in not appreciating the fact that in the assesee’s case the initiation of proceedings u/s. 147 is on the basis of internal audit objection which is clearly covered by the decision of Supreme Court in the case of Indian & Eastern News Paper Society reported in 119 ITR 996 and that the decision of PVS Beedies reported in 237 ITR 13 which relate to case of pointing out a mistake of fact, and holding that the proceedings u/s. 147 is validly initiated? 3. on the facts and in the circumstances of the case, whether the Income Tax Appellate Tribunal is correct in law in setting aside the matter with regard to arriving at WDV after reducing grants and working out WDV from 01.04.1989 to the file of Commissioner of Income Tax (Appeals) to examine the implication of provisions of explanation 6 to Sec.43(6) of the Act in spite of his specific finding that it is not applicable since the books of account are found to be incorrect as far as WDV is concerned, instead of giving a specific finding on its application? We have heard Sri K. Vasantkumar, learned counsel for the appellant and gone through the impugned judgment and order of the learned Tribunal. It appears that the learned Tribunal has not decided anything and remanded the matter to the Commissioner of Income Tax (Appeals) to decide the issue afresh, after giving an opportunity of hearing to the assessee. When the learned Tribunal has not taken any decision, it is very difficult for this Court to admit the appeal. Therefore, we do not admit the appeal. It cannot be disputed that the Tribunal has no power to remand the matter. When the Tribunal remanded the matter on just and reasonable ground, the same cannot be interfered with. However, liberty is given to the appellant to raise all the points before the Commissioner of Income Tax (Appeals) at the time of fresh hearing. We desire that the Commissioner of Income Tax (Appeals) shall decide the matter within a period of one month from the date of communication of this order. The appeal is accordingly dismissed. _____________________ K.J. SENGUPTA, CJ ________________ K. C. BHANU, J Date: 01.10.2013 ES "