ITO, Gulbarga V. M/s N K Minerals, Gulbarga

ITA 555/BANG/2016

• Counselvise Citation: [2017] 130 COUNSELVISE.COM (IT) 8617 (ITAT-BANGALORE)
• Duration Of Justice: 9 month(s) 27 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 20-01-2017
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: C
• Next Hearing Date: 19-01-2017
• Assessment Year: 2010-2011
• Appeal Filed On: 23-03-2016
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: M K BIJU
• Assessee Lawyers: B SUDHINDRA
• Section: 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL C BENCH : BANGALORE BEFORE SHRI GEORGE GEORGE, JUDICIAL MEMBER AND SHRI INTURI RAMA RAO, ACCOUNTANT MEMBER ITA NO.555/B/2016 ASSESSMENT YEAR : 2010-11 INCOME TAX OFFICER, WARD-2, GULBARGA. VS. M/S. N. K. MINERALS, SALAMBHAI COMPLEX, ACC MAIN ROAD, WADI, GULBARGA, KARNATAKA 585225. PAN : AAFFN2983C APPELLANT RESPONDENT REVENUE BY : SHRI. M. K. BIJU, J CIT ASSESSEE BY : SHRI. B. SUDHINDRA, CA DATE OF HEARING : 19.1.2017 DATE OF PRONOUNCEMENT : 20 .1.201 7 O R D E R PER GEORGE GEORGE, JUDICIAL MEMBER THIS APPEAL AT INSTANCE OF THE REVENUE IS DIRECTED AGAINST CIT(A)S ORDER DATED 27.01.2016. THE RELEVANT ASSESSMENT Y EAR IS 2010 2011. ITA NO. 555/B/2016 PAGE 2 OF 5 2. BRIEF FACTS OF THE CASE ARE AS FOLLOWS : THE ASSESSEE IS A FIRM CARRYING OUT BUSINESS IN IRO N ORE ETC. THE RETURN OF INCOME WAS FILED FOR THE ASSESSMENT YEAR 2010-11 ON 26.09.2010 DECLARING TOTAL INCOME OF RS.8,64,330/-. THE ASSES SMENT UNDER SECTION 143(3) OF THE ACT WAS COMPLETED VIDE ORDER DATED 22 .03.2013 AT A TOTAL INCOME OF RS.1,38,25,100/-. THE AO HAD MADE THE FOL LOWING ADDITIONS/DISALLOWANCES. 1. FICTITIOUS RD PURCHASE DISALLOWED - RS. 3,62,273/- 2. URD PURCHASE DISALLOWED - RS.1,14,73,26 3/- 3. VARIATIONS FOUND UNDER SUNDRY CREDITORS - RS.10, 80,910/- 4. BILL CLAIMED TWICE UNDER DEDUCTION ON MOISTURE CONTENT A/C. - RS.3,247/- 5. ONE-FOURTH OF THE EXPENSES TOWARDS PERSONAL USE - RS.41,032/- TOTAL ADDITIONS - R S.1,29,60,725/- 3. AGGRIEVED BY THE ASSESSMENT, THE ASSESSEE PREFER RED AN APPEAL TO THE FIRST APPELLATE AUTHORITY. THE CIT(A) SET ASIDE TH E ASSESSMENT TO THE AO FOR DENOVA CONSIDERATION WITH REGARD TO THE ADDITION OF RS.1,14,73,263/-, RS.3,62,273/- AND RS.10,80,910/-. THE CIT(A) HAD D ELETED THE ADDITION OF RS.41,032/- ON ACCOUNT OF ONE-FOURTH OF THE EXPENSE S TOWARDS PERSONAL USE. 4. AGGRIEVED BY THE ORDER OF THE CIT(A), THE REVENU E IS IN APPEAL BEFORE US BY RAISING THE FOLLOWING GROUNDS: ITA NO. 555/B/2016 PAGE 3 OF 5 5. THE LEARNED DR SUBMITTED THAT CIT(A) IS NOT JUST IFIED IN REMANDING THE ISSUE FOR DENOVO CONSIDERATION TO THE AO. IT W AS SUBMITTED THAT SUBSEQUENT TO 01.06.2001, THE POWER OF REMANDING TH E CASES VESTED WITH THE CIT(A) WAS DONE AWAY AND NECESSARILY THE ISSUE HAVE TO BE DECIDED BY THE CIT(A). THE LEARNED AR PRESENT DID NOT HAVE ANY SE RIOUS OBJECTION IN THE ENTIRE MATTER TO BE RECONSIDERED BY THE CIT(A). ITA NO. 555/B/2016 PAGE 4 OF 5 6. WE HAVE HEARD THE RIVAL SUBMISSION AND PERUSED T HE MATERIAL ON RECORD. THE ADDITIONS MADE BY THE AO AMOUNTING TO RS.3,62,273/-, RS.1,14,73,263/- AND RS.10,80,910/- WERE SET ASIDE BY THE CIT(A) AND HE REMANDED THE THREE ISSUES TO AO FOR DENOVA CONSIDER ATION. THE CIT(A) DOES NOT HAVE POWER TO REMAND THE CASE TO THE AO, S UBSEQUENT TO THE AMENDMENT TO SECTION 251 OF IT ACT BY FINANCE ACT, 2001 W.E.F. 01.06.2001. IF CERTAIN CLARIFICATION IS NEEDED FRO M THE AO, THE CIT(A) IS AT LIBERTY TO CALL FOR THE REMAND REPORT AND ON RECEIP T OF THE SAME, HAS TO DECIDE THE ISSUE ON MERITS. THEREFORE, THE CIT(A) IN THE IMPUGNED ORDER BY REMANDING THE VARIOUS ISSUES TO THE AO HAS EXCEEDED THE JURISDICTION. HENCE, WE ARE OF THE VIEW THAT THE CIT(A) ORDER NEE DS TO BE QUASHED AND ACCORDINGLY WE QUASH THE SAME. THE CIT(A) IS DIREC TED TO RECONSIDER THE ENTIRE ISSUES THAT ARE RAISED IN THIS APPEAL AND DI SPOSE OFF THE SAME AFTER AFFORDING REASONABLE OPPORTUNITY OF HEARING TO THE ASSESSEE. IT IS ORDERED ACCORDINGLY. 7. IN THE RESULT, THE APPEAL FILED BY THE REVENUE I S ALLOWED FOR STATISTICAL PURPOSES. ORDER PRONOUNCED IN THE OPEN COURT ON 20-1-2017. SD/- SD/- (INTURI RAMA RAO) (GEORGE GEOR GE K) ACCOUNTANT MEMBER JUD ICIAL MEMBER BANGALORE. DATED: 20 TH JANUARY, 2017. /NS/ ITA NO. 555/B/2016 PAGE 5 OF 5 COPY TO: 1. APPELLANTS 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR, ITAT, BANGALORE.