The Asstt. Commissioner of Income-tax, Amritsar. V. M/s. Amritsar Improvement Trust, Amritsar.

ITA 356/ASR/2011

• Counselvise Citation: 35620914 RSA 2011
• Duration Of Justice: 1 year(s) 2 month(s) 24 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 03-09-2012
• Appeal Filed By: Department
• Order Result: Partly Allowed
• Bench Allotted: DB
• Next Hearing Date: 03-07-2012
• Assessment Year: 2005-2006
• Appeal Filed On: 09-06-2011
• Result in Favour of: Partly Allowed
• Court: TRIBUNAL
• Assessee Lawyers: J P BHATIA

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL AMRITSAR BENCH; AMRITSAR. BEFORE SH. H.S. SIDHU, JUDICIAL MEMBER AND SH. B.P.JAIN, ACCOUNTANT MEMBER I.T.A. NO. 491, 492 & 493(ASR)/2011 ASSESSMENT YEAR:2007-08, 2008-09 & 2009-10 PAN :AMRAI0706D THE INCOME TAX OFFICER, VS. M/S. AMRITSAR IMPROVEM ENT TRUST, (TDS)-1, AMRITSAR. AMRITSAR. (APPELLANT) (RESPONDENT) I.T.A. NOS.355 & 356(ASR)/2011 ASSESSMENT YEAR:2004-05 & 2005-06 PAN :AAJFA4492K THE ASSTT. COMMR. OF INCOME-TAX, VS. M/S. AMRITSAR IMPROVEMENT TRUST, CIRCLE-V, AMRITSAR. AMRITSAR. (APPELLANT) (RESPONDENT) APPELLANT BY:SH. TARSEM LAL, DR RESPONDENT BY:SH. J.P. BHATIA, ADV. DATE OF HEARING:27/08/2012 DATE OF PRONOUNCEMENT:03/09/2012 ORDER PER BENCH ; THE REVENUE HAS FILED THE PRESENT FIVE APPEALS AGA INST DIFFERENT ORDERS OF THE CIT(A), AMRITSAR, DATED 20.06.21011 & 18.03. 2011 RELATING TO ASSESSMENT YEARS 2004-05, 2005-06, 2007-08, 2008-09 & 2009-2010 RESPECTIVELY. 2 2. AT THE TIME OF HEARING SH. TARSEM LAL, THE LD. D R STATED THAT IN THESE APPEALS, THE LD. CIT(A) HAS SET ASIDE THE ISSUE IN DISPUTE TO THE AO TO DECIDE THE SAME WITH SOME DIRECTIONS, AS MENTIONED IN THE IMPUGNED ORDERS. HE ALSO DREW OUR ATTENTION TO THE DIRECTIONS GIVEN BY THE LD. CIT(A) TO THE AO IN THE IMPUGNED ORDERS. HE ALSO DREW OUR ATTENTION TOW ARDS SECTION 251(A) OF THE INCOME-TAX ACT, 1961 AND STATED THAT THE LD. CI T(A) HAS NOT POWER TO SET ASIDE THE ASSESSMENT AND ISSUE DIRECTION TO THE AO, AS HE HAS ISSUED IN THE PRESENT IMPUGNED ORDERS. HE REQUESTED THAT THE ISSUE IN DISPUTE MAY BE SET ASIDE TO THE LD. CIT(A) TO DECIDE THE SAME HIMS ELF AFRESH UNDER THE LAW AFTER HEARING THE PARTIES. 3. ON THE CONTRARY, THE LD. COUNSEL FOR THE ASSESSE E, RELIED UPON THE IMPUGNED ORDERS OF LD. CIT(A). 4. WE HAVE HEARD BOTH THE PARTIES AND PERUSED THE I MPUGNED ORDERS PASSED BY THE LD. FIRST APPELLATE AUTHORITY IN THE PRESENT APPEALS AS WELL AS POWERS OF THE LD. CIT(A) AS PER SECTION 251 OF THE ACT. FOR THE SAKE OF CONVENIENCE, PROVISIONS OF SECTION 251 (1)(A) OF TH E ACT ARE REPRODUCED AS UNDER: 251(1)(A): IN AN APPEAL AGAINST AN ORDER OF ASSESS MENT, HE MAY CONFIRM, REDUCE, ENHANCE OR ANNUL THE ASSESSMENT. 67. THE PROTION BEGINNING WITH THE WORDS OR HE MA Y SET ASIDE AND ENDING WITH THE WORDS ON THE BASIS OF SUCH FRESH ASSESSMENT, OMITTED BY THE FINANCE ACT, 2011 W.E.F. 1.6.2001. P RIOR TO ITS OMISSION, THE QUOTED PORTION WAS AMENDED BY THE FIN ANCE (NO.2) ACT, 3 1977, W.E.F. 10.7.1978, THE DIRECT TAX LAWS (AMENDM ENT) ACT, 1987, W.E.F. 1.4.1988 AND THE FINANCE (NO.2) ACT, 1998, W .E.F. 1.10.1998. 4.1. WE HAVE ALSO PERUSED THE DIRECTIONS GIVEN BY T HE LD. CIT(A) TO THE AO IN THE IMPUGNED ORDERS AND WE ARE OF THE CONSIDE RED VIEW THAT THE LD. FIRST APPELLATE AUTHORITY HAVE NO POWER TO SET ASI DE THE ISSUE IN DISPUTE TO THE AO TO DECIDE THE SAME AS DIRECTED BY THE LD. CIT(A) IN THE IMPUGNED ORDERS. KEEPING IN VIEW THE POWERS OF THE LD. CIT(A), MENTI ONED IN SECTION 251(A) AS REPRODUCED ABOVE, WE ARE OF THE VIEW THAT THE LD . FIRST APPELLATE AUTHORITY HAS WRONGLY ISSUED DIRECTION TO THE AO IN ALL THE F IVE CASES TO COMPLETE ASSESSMENTS IN VIEW OF HIS DIRECTION WHICH IS IN V IOLATION OF SECTION 251(A) OF THE ACT, BECAUSE THE POWER TO SET ASIDE HAS BEEN WITHDRAWN VIDE FINANCE ACT, 2001 W.E.F. 01.06.2001 AS REPRODUCED A BOVE. KEEPING IN VIEW THE FACTS AND CIRCUMSTANCES OF THE PRESENT CASE AND IN THE INTEREST OF JUSTICE, WE CANCEL THE IMPUGNED ORDERS IN ALL THESE FIVE APP EALS WITH THE DIRECTION TO THE LD. CIT(A) TO DECIDE THE ISSUE IN DISPUTE HIMSE LF AFRESH UNDER LAW AFTER GIVING OPPORTUNITY TO THE RESPECTIVE PARTIES. 5. IN THE RESULT, ALL THE FIVE APPEALS OF THE REVE NUE ARE ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 3RD SEPTEMBER, 2012. SD/- SD/- (B.P. JAIN) (H.S. SIDHU) ACCOUNTANT MEMBER JUDICIAL MEMBER DATED: 3RD SEPT., 2012 4 /SKR/ COPY OF THE ORDER FORWARDED TO: 1. THE ASSESSEE:M/S. AMRITSAR IMPROVEMENT TRUST, AMRIT SAR. 2. THE ACIT, CIR.V/ITO (TDS)-1, ASR. 3. THE CIT(A) ASR. 4. THE CIT, ASR. 5. THE SR DR, ITAT, AMRITSAR. TRUE COPY BY ORDER (ASSISTANT REGISTRAR) INCOME TAX APPELLATE TRIBUNAL, AMRITSAR BENCH: AMRITSAR.