DCIT CIR 3(3), MUMBAI V. WARTSILA INDIA LTD, NAVI MUMBAI

ITA 3730/MUM/2012

• Counselvise Citation: [2013] 120 COUNSELVISE.COM (IT) 3414 (ITAT-MUMBAI)
• Duration Of Justice: 1 year(s) 25 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 19-06-2013
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: G
• Assessment Year: 2007-2008
• Appeal Filed On: 25-05-2012
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Assessee Lawyers: HITEN R PAURANA
• Keywords: Opportunity of being heard
• Section: 14A

Judgement Text

, IN THE INCOME TAX APPELLATE TRIBUNAL G BENCH, MUMBAI . . , ! '#$% , & '( BEFORE SHRI H.L. KARWA, PRESIDENT AND SHRI N.K. BI LLAIYA, AM ./I.T.A. NO.3730/MUM/2012 ( ) ) ) ) / ASSESSMENT YEAR: 2007-08 THE DCIT, CIR 3 (3), AAYAKAR BHAVAN, MUMBAI-400 020 M/S. WARTSILA INDIA LTD., 48, NECO CHAMBERS, SECTOR-11, CBD BELAPUR, NAVI MUMBAI-400 617 (* & ./ + ./PAN/GIR NO. : AAACW 0345D ( *, /APPELLANT ) .. ( -.*, / RESPONDENT ) *, / / APPELLANT BY : ` SHRI PAVAN VED -.*, 0 / /RESPONDENT BY : SHRI HITEN R PAURANA 0 12& / DATE OF HEARING :19.06.2013 34) 0 12& / DATE OF PRONOUNCEMENT :19.6.2013 ' 5 / O R D E R PER N.K. BILLAIYA, AM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE LD. CIT(A)-7, MUMBAI DT.31.01.2012 PERTAINING TO A.Y. 2007-08. 2. THE REVENUE HAS RAISED THREE SUBSTANTIVE GROUNDS OF APPEAL. FIRST WE TAKE GROUND NO. 2 WHICH IS AS UNDER: ON THE FACTS AND CIRCUMSTANCES OF THE CASE AND IN LAW, THE LD. CIT(A) HAS FAILED TO APPRECIATE THAT AS PER CL AUSE (A) OF ITA NO.3730/M/2012 2 SEC. 251(1), THE LD. CIT(A) HAS NO POWER TO REMIT T HE MATTER BACK TO THE FILE OF THE AO FOR VERIFICATION. 3. THE LD. DEPARTMENTAL REPRESENTATIVE STRONGLY CON TENDED THAT THE ORDER OF THE LD. CIT(A) IS BAD IN LAW INASMUCH AS I T IS IN VIOLATION OF THE PROVISIONS OF SEC. 251(1) OF THE ACT. 4. WE HAVE CAREFULLY PERUSED THE ORDER OF THE LD. C IT(A). WE FIND THAT THE LD. CIT(A) HAS (A) SET ASIDE THE CLAIM OF THE ASSESSEE OF LIQUIDAT ED DAMAGES AMOUNTING TO RS. 12,44,075/- (B) DIRECTING THE AO TO WORK OUT THE DISALLOWANCE O F EXPENDITURE U/S. 14A AFTER PROVIDING OPPORTUNITY TO THE ASSESSE E (C) RESTORING THE ISSUE RELATING TO THE UNITS OF KO TAK FMP SERIES GROWTH BACK TO THE FILES OF THE AO DIRECTING THE AO TO VERIFY WHETHER THE UNITS WERE HELD FOR PERIOD OF MORE THAN 12 MONTHS (D) DIRECTING THE AO TO VERIFY ASSESSEES CLAIM FO R THE PROVISIONS FOR DOUBTFUL DEBT AND WHETHER THE SAME AS BEEN ADDE D BACK TO THE INCOME OF THE ASSESSEE. 5. A PERUSAL OF THE POWERS OF COMMISSIONER (APPEALS ) AS PROVIDED U/S. 251 OF THE ACT SHOW THAT U/S. 251(1)(A), IT IS PROVIDED THAT IN DISPOSING OF AN APPEAL COMMISSIONER (APPEALS) SHALL HAVE THE FOLLOWING POWERS: IN AN APPEAL AGAINST AN ORDER OF ASSESSMENT, HE MAY CONFIRM, REDUCE, ENHANCE OR ANNUL ASSESSMENT. THE FINANCE A CT OF 2001 HAS ITA NO.3730/M/2012 3 WITHDRAWN THE POWER TO SET ASIDE THE ASSESSMENT WIT H EFFECT FROM 1.6.2001. 6. WE FIND FORCE IN THE SUBMISSION OF THE LD. DEPAR TMENTAL REPRESENTATIVE THAT THE ORDER OF THE LD. CIT(A) DES ERVES TO BE SET ASIDE. WE ACCORDINGLY RESTORE THE ENTIRE ISSUE BACK TO THE FILES OF THE LD. CIT(A). THE LD. CIT(A) IS DIRECTED TO GIVE INDEPEN DENT FINDINGS BY CALLING REMAND REPORT, IF NECESSARY, WHILE DECIDIN G THE APPEAL. THE LD. CIT(A) IS EXPECTED TO GIVE A REASONABLE AND SUFFICI ENT OPPORTUNITY OF BEING HEARD TO THE ASSESSEE. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSE. ORDER PRONOUNCED IN THE OPEN COURT ON 19.6.2013 . ' 5 0 4) & 6 7'8 19.6.2013 4 0 9 SD/- SD/- (H.L. KARWA ) (N.K . BILLAIYA ) / PRESIDENT & '( / ACCOUNTANT MEMBER MUMBAI; 7' DATED 19 /06 /2013 . . ./ RJ , SR. PS ITA NO.3730/M/2012 4 ' 5 ' 5 ' 5 ' 5 0 00 0 -1' -1' -1' -1' : ')1 : ')1 : ')1 : ')1 / COPY OF THE ORDER FORWARDED TO : 1. *, / THE APPELLANT 2. -.*, / THE RESPONDENT. 3. ; ( ) / THE CIT(A)- 4. ; / CIT 5. '<9 -1 , , / DR, ITAT, MUMBAI 6. 9= > / GUARD FILE. ' 5 ' 5 ' 5 ' 5 / BY ORDER, .'1 -1 //TRUE COPY// ? ?? ? / @ @ @ @ (DY./ASSTT. REGISTRAR) , / ITAT, MUMBAI