THE PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S AI ZARAFA TRAVEL AND MANPOWER CONSULTANTS PVT LTD

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI THURSDAY, THE 22ND DAY OF SEPTEMBER 2022 / 31ST BHADRA, 1944 ITA NO. 9 OF 2022 AGAINST THE ORDER IN ITA 29/Coch/2021 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/RESPONDENT/REVENUE:

THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL),5TH FLOOR, KANDAMKULATHY TOWER, M.G.ROAD, KOCHI , PIN - 682011

BY ADVS. JOSE JOSEPH P.K.RAVINDRANATHA MENON (SR.)

RESPONDENT/APPELLANT/ASSESSEE:

M/S AI ZARAFA TRAVEL AND MANPOWER CONSULTANTS PVT LTD C/O ALIAS GEORGE & CO., CAS EGC HOUSE, HIG AVENUE GANDHI NAGAR, KOCHI, PIN - 682020

BY ADV PREETHA S.NAIR

OTHER PRESENT:

ADV. NAVANEETH N. NATH

Sr, ADV. JOSEPH MARKOS THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 22.09.2022, ALONG WITH ITA.10/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA Nos.9 & 10/2022

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE S.V.BHATTI & THE HONOURABLE MR.JUSTICE BASANT BALAJI THURSDAY, THE 22ND DAY OF SEPTEMBER 2022 / 31ST BHADRA, 1944 ITA NO. 10 OF 2022 AGAINST THE ORDER IN ITA 30/Coch/2021 OF I.T.A.TRIBUNAL,COCHIN BENCH APPELLANT/RESPONDENT/REVENUE:

THE PRINCIPAL COMMISSIONER OF INCOME TAX (CENTRAL),5TH FLOOR, KANDAMKULATHY TOWER,M.G.ROAD,KOCHI, PIN - 682011

BY ADVS. JOSE JOSEPH P.K.RAVINDRANATHA MENON (SR.)

RESPONDENT/APPELLANT/ASSESSEE:

M/S AI ZARAFA TRAVEL AND MANPOWER CONSULTANTS PVT LTD C/O ALIAS GEORGE & CO., CAS EGC HOUSE, HIG AVENUE GANDHI NAGAR, KOCHI , PIN - 682020

BY ADV PREETHA S.NAIR OTHER PRESENT ADV. NAVANEETH N. NATH Sr, ADV. JOSEPH MARKOS THIS INCOME TAX APPEAL HAVING COME UP FOR ADMISSION ON 22.09.2022, ALONG WITH ITA.9/2022, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA Nos.9 & 10/2022

J U D G M E N T [ITA Nos.9/2022, 10/2022]

S.V.Bhatti, J.

Heard learned Advocate Mr Navneeth N Nath, holding for learned Standing Counsel Mr Jose Joseph, for the appellant and learned Senior Advocate Mr Joseph Markos, and Adv. Preetha S. Nair for the respondent. 2. The Principal Commissioner of Income Tax/Revenue is the appellant. M/s. Al Zarafa Travel and Manpower Consultants Pvt. Ltd/assessee is the respondent. 3. The details of orders from which respective appeals arise are stated in the following tabular statement: Sl. No. Assessment Year & Date of Assessment Order Order of Commissioner of Income Tax (Appeals) Income Tax Appellate Tribunal ITA No. 1 2014-15 Appeal No.ITA No.2 to 7/E/CIT(A)-III/2018-19 dtd 25.01.2021 ITA No.29/Coch/2021 dtd 10.02.2022 9/2022

2 2015-16 Appeal No.ITA No.2 to 7/E/CIT(A)-III/2018-19 dtd 25.01.2021 ITA No.30 /Coch/2021 dtd 10.02.2022 10/2022

ITA Nos.9 & 10/2022

admission in I.T.A. No. 9/2022. ITA No.10/2022 was listed for admission on 20.09.2022. It was brought to our notice when the learned Senior Advocate that the Income Tax Appeals filed by the assessee against the order dated 10.02.2022 were dismissed by this Court vide common judgment dated 26.07.2022. The Revenue raises the following substantial questions of law: “1. Whether on the facts and the circumstances of the case, the Hon’ble Tribunal was right in holding that the principles of natural justice was not met as opportunity for cross examination of witness by the authorised representative was not granted by Assessing Officer when no such ground was raised before the Hon'ble Tribunal for AY 2015-16 neither in the grounds of appeal nor in the additional grounds raised. 2) Whether on the facts and the circumstances of the case, the Hon'ble Tribunal was right in remitting the issues for reconsideration to Assessing Officer for re- adjudication when the CIT(A) on the direction of ITAT's earlier order dated 04-02-2019 has decided the appeal of the assessee after considering the remand report of the Assessing officer. 3) Whether on the facts and the circumstances of the case, the Hon'ble Tribunal was right in holding that the principles of natural justice was not met when the witnesses have filed retraction affidavits and which were considered in detail and rejected by the

ITA Nos.9 & 10/2022

learned CIT(A). 4) Whether on the facts and the circumstances of the case, the Hon'ble Tribunal was right in holding that the evidence used against the assessee should be put for rebuttal when all the evidences have been put to the assessee for rebuttal during the remand proceedings before the assessing officer and remand report furnished to the CIT(A)”

We are of the view that the assessee was in appeal before the Tribunal. The Tribunal allowed the appeal in part and remitted the matter to the Assessing Authority for disposal afresh. The issues are substantially now relegated to the Assessing Officer for reconsideration. We are of the view that firstly the appeals filed by the assessee are dismissed. An order of remand in respect of the same common judgment is confirmed. Secondly, all the issues are to be considered by the Assessing Authority as directed by the Tribunal. The Tribunal has recorded sufficient reasons for remanding the matter to the Assessing Officer. We are pursuaded that the appeals at the instance of Revenue need not be entertained since no substantial question of law arises.

ITA Nos.9 & 10/2022

Hence, the Income Tax Appeals are dismissed.

S.V.BHATTI JUDGE

BASANT BALAJI JUDGE

ITA Nos.9 & 10/2022

APPENDIX OF ITA 10/2022

PETITIONER’S ANNEXURES Annexure A TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 29-12-2016. Annexure B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 25-01-2021. Annexure C TRUE COPY OF THE ORDER OF THE INCOME TAX APPELLATE TRIBUNAL DATED 10-02-2022.

ITA Nos.9 & 10/2022

APPENDIX OF ITA 9/2022

PETITIONER’S ANNEXURES Annexure A TRUE COPY OF THE ORDER OF THE ASSESSING OFFICER DATED 29-12-2016 Annexure B TRUE COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DATED 25-01-2021