DY. COMMISSIONER OF INCOME TAX, CIRCLE-16(1), HYDERABAD vs. NOVA INTEGRATED SYSTEMS LIMITED, HYDERABAD

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ITA 1414/HYD/2019Status: DisposedITAT Hyderabad07 October 2021AY 2016-173 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found that the CIT(A) had erred by remitting the matter back to the AO without following the proper procedure. Therefore, the Tribunal remitted the entire matter back to the AO for fresh consideration.

What were the facts?

The Revenue appealed against the CIT(A)'s order which had remitted the matter back to the AO for verification. The Tribunal noted that the CIT(A) did not have the power to directly remit the matter without obtaining a remand report.

What were the issues?

Whether the CIT(A) had the power to remit the matter back to the AO without obtaining a remand report. The eligibility of the assessee for deduction under Section 35(1)(iv) was also a point of contention.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 250(6),Section 35(1)(iv)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH-A, HYDERABAD

Before: SHRI A. MOHAN ALANKAMONY & SHRI S.S. GODARA

For Appellant: Shri Chintan Ghelani
For Respondent: Shri M. Mahidhar, DR
Hearing: 29/09/2021Pronounced: 07/10/2021

Assessee by: Shri Chintan Ghelani Revenue by: Shri M. Mahidhar, DR Date of hearing: 29/09/2021 Date of pronouncement: 07/10/2021 ORDER PER A. MOHAN ALANKAMONY, AM This appeal is filed by the Revenue against the order of the Ld. CIT (A)-4, Hyderabad in appeal No.10339/2018-19/ACIT, Cir-16(1) / CIT (A)- 4/Hyd/19-20, dated 28/06/2019 passed U/s. 143(3) r.w.s 250(6) of the Act for the AY 2016-17.

2.

The revenue has raised two grounds in its appeal and they are extracted herein below for reference:

1. The Ld. CIT (A) erred in deleting the addition made by the AO in the light of the fact that the assessee is not eligible for deduction U/s 35(1)(iv) as it is not entitled for the same assessment year in question. 2. Any other ground that may be raised at the time of hearing.

3.

At the outset, on perusal of the order of the Ld. CIT (A), we find that the Ld. CIT (A) has remitted the matter back to the file of the Ld. AO for verification for which the Ld. CIT (A) has no powers under the provisions of the Act. The Ld. CIT (A) ought to have obtained a remand report from the Ld. AO and thereafter passed appropriate order in accordance with law and merit which he has failed to do so. Therefore, considering the facts and circumstances of the case and to ease the situation, We hereby remit the entire matter back to the file of the Ld. AO for fresh consideration and to pass appropriate order in accordance with law and merit after considering the findings of the Ld. CIT (A).

4.

In the result, appeal of the Revenue is allowed for statistical purposes as indicated herein above.

Order pronounced in the open court on the 07th October, 2021.

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