DCIT, Bangalore V. M/s Stumpp Schuele & Somappa Pvt. Ltd., Bangalore

ITA 749/BANG/2014

• Counselvise Citation: [2015] 120 COUNSELVISE.COM (IT) 9757 (ITAT-BANGALORE)
• Duration Of Justice: 11 month(s) 19 day(s)
• Appeal Type: Income Tax Appeal
• Pronouncement Date: 22-05-2015
• Appeal Filed By: Department
• Order Result: Allowed
• Bench Allotted: B
• Assessment Year: 2010-2011
• Appeal Filed On: 02-06-2014
• Result in Favour of: Revenue
• Court: TRIBUNAL
• Department Lawyers: NAMBIRAJAN PILLAI J
• Section: 43B; 143(3)

Judgement Text

IN THE INCOME TAX APPELLATE TRIBUNAL B BENCH : BANGALORE BEFORE SMT. P. MADHAVI DEVI, JUDICIAL MEMBER A ND SHRI JASON P.BOAZ, ACCOUNTANT MEMBER ITA NO. 749 / BANG/20 14 (ASSESSMENT YEAR: 20 1 0 - 11 ) DEPUTY COMMISSIONER OF INCOME - TAX, LARGE TAX PAY ERS UNIT, BANGALORE. APPELLANT VS. M/S.STUMPP SCHUELE & SOMAPPA PVT. LTD. 139/2, HOSUR ROAD, KORAMANGALA, BANGALORE - 560095. RESPONDENT PAN: AACCS2285G APPELLANT BY: SHRI NAMBIRAJAN PILLAI, JCIT(DR) RESPONDENT BY: NONE. DATE OF HEARING : 14/05/2015 DATE OF PRONOUNCEMENT: 22 /05/2015 O R D E R PER SMT.P.MADHAVI DEVI, JM: THIS APPEAL BY THE REVENUE IS DIRECTED AGAINST THE ORDER OF THE CIT(A), LTU, BANGALORE, DATED 20/03/2014 SETTING ASIDE THE ISSUE OF CLAIM O F DEDUCTION U/S 43B OF THE INCOME - TAX ACT, 1961 [HEREINAFTER REFERRED TO AS 'THE ACT' FOR SHORT] TO THE ASSESSING OFFICER (AO) FOR THE ASSESSMENT YEAR 2010 - 11. IT IS THE CASE OF THE REVENUE THAT THE CIT(A) DOES NOT HAVE THE POWER TO REMAND BACK THE ISSUE. ITA NO . 749 /BANG/20 1 4 M/S.STUMPP SCHUELE & SOMAPPA PVT.LTD. PAGE 2 OF 3 2. BRIEF FACTS OF THE CASE ARE THAT THE ASSESSEE - COMPANY FILED ITS RETURN OF INCOME FOR THE RELEVANT ASSESSMENT YEAR ON 14/10/2010. DURING THE ASSESSMENT PROCEEDINGS U/S 143(3) OF THE ACT, THE AO MADE CERTAIN DISALLOWANCES AND CONSEQUENTIAL ADDI TIONS TO THE RETURNED INCOME OF THE ASSESSEE AND BROUGHT THEM TO TAX. AGGRIEVED, ASSESSEE PREFERRED AN APPEAL BEFORE THE CIT(A) AND HAS ALSO SUBMITTED A TABLE SHOWING THE WORKING OF DEDUCTION U/S 43B TO BE ALLOWED FOR ASSESSMENT YEAR 2010 - 11. THE ASSESS EE HAD FILED DETAILS OF DISALLOWANCES MADE OF BONUS, LEAVE, GRATUITY PROVISION FOR ASSESSMENT YEAR 2009 - 10 BUT PAID IN ASSESSMENT YEAR 2010 - 11. THE CIT(A) SET ASIDE THE ASSESSMENT TO THE FILE OF THE AO AND DIRECTED THE AO TO CALL FOR EVIDENCE OF SUCH PAYM ENT AND ALLOW THE SAME IF FOUND TO BE CORRECT. IT IS THE CASE OF THE REVENUE THAT T HE CIT(A) OUGHT TO HAVE CALLED FOR A REMAND REPORT FROM THE AO AND DECIDE D THE ISSUE ON MERIT S BUT HE IS DIVESTED OF POWER TO REMIT THE ISSUE TO THE FILE OF THE AO FOR VERI FICATION AND THEREFORE HIS ORDER IS NOT MAINTAINABLE . 3. IN SPITE OF SERVICE OF NOTICE ON THE ASSESSEE, NONE APPEARED FOR THE ASSESSEE. THEREFORE, AFTER HEARING THE LEARNED DEPARTMENTAL REPRESENTATIVE AND ON PERUSAL OF MATERIAL ON RECORD, WE ARE OF THE OPINION THAT THE DIRECTION OF THE CIT(A) IS NOT SUSTAINABLE. IN VIEW OF THE SAME, WE REMIT THE ISSUE TO THE FILE OF THE CIT(A) WITH A DIRECTION TO CALL FOR A REMAND REPORT FROM ITA NO . 749 /BANG/20 1 4 M/S.STUMPP SCHUELE & SOMAPPA PVT.LTD. PAGE 3 OF 3 THE AO ON THE ISSUE AND DECIDE THE ISSUE ON MERITS IN ACCORDANCE WITH L AW THEREAFTER. 4. IN THE RESULT, THE REVENUE S APPEAL IS TREATED AS ALLOWED FOR STATISTICAL PURPOSES. PRON OUNCED IN THE OPEN COURT ON 22 ND MAY , 201 5 . S D/ - S D/ - (JASON P BOAZ ) ( SMT. P.MADHAVI DEVI) ACCOUNTANT MEMBER JUDIC IAL MEMBER EKSRINIVASULU COPY TO: 1. APPELLANT 2. RESPONDENT 3. CIT 4. CIT(A) 5. DR, ITAT, BANGALORE. 6. GUARD FILE BY ORDER ASSISTANT REGISTRAR INCOME - TAX APPELLATE T RIBUNAL BANGALORE