M/S Su Sampada vs. The Commissioner Of Income Tax

ITA/20/2015HC Madhya Pradesh22 April 2018Bench: HON'BLE SHRI JUSTICE P.K. JAISWAL2 pages

For Petitioner: Pradeep Choudhary

AI SummaryRemanded

What did the High Court hold?

The High Court noted that the parties jointly agreed that Questions 1 and 3 were not required to be adjudicated and that the appellant was not pressing these grounds, thus treating them as withdrawn. Regarding Question 2, concerning the set-off of losses and depreciation carried forward, both parties jointly agreed that this ground required remand to the Income Tax Appellate Tribunal (ITAT) for adjudication, as it had not been previously decided. Consequently, the High Court remanded Ground No. 2 to the ITAT, Indore, for its decision after providing adequate opportunity of hearing to the parties. The appeal (ITA No. 20 of 2015) was disposed of with this direction.

What were the facts?

This case involves Income Tax Appeal No. 20 of 2015 before the High Court of Madhya Pradesh, Bench at Indore. The appeal was admitted on three substantial questions of law on November 4, 2015. The appellant was represented by Shri Anand Prabhawalkar, Advocate, and the respondent by Ms. Veena Mandlik, Advocate. The parties jointly agreed that two of the substantial questions of law (Questions 1 and 3) were not required to be adjudicated and were to be treated as withdrawn by the appellant. The remaining question (Question 2) was agreed to be remanded to the Income Tax Appellate Tribunal (ITAT) for adjudication.

What were the issues?

1. Whether the ITAT was justified in confirming the disallowance of Rs. 3,10,000/- in respect of partner's remuneration, despite no deduction being claimed by the appellant? 2. Whether the ITAT committed an error of law by not deciding the alternative ground raised by the appellant regarding the set-off of losses and depreciation carried forward from earlier years against the income determined/assessed? 3. Whether, in the facts and circumstances of the case, the ITAT was justified in dismissing the appeal in a summary manner? Contentions: Assessee: The appellant agreed that Questions 1 and 3 were not required to be adjudicated and were withdrawn. Regarding Question 2, the appellant agreed that it should be remanded to the ITAT for adjudication. Revenue: The revenue's counsel also agreed that Questions 1 and 3 were not required to be adjudicated and were withdrawn. Regarding Question 2, the revenue's counsel agreed that it should be remanded to the ITAT for adjudication.

AI-generated summary — verify with the full judgment below

1 HIGH COURT OF MADHYA PRADESH: BENCH AT INDORE NATIONAL LOK ADALAT

I. T. A. No.20 of 2015 Indore, Dated:- 22/04/2018 Shri Anand Prabhawalkar, Advocate for the appellant. Ms. Veena Mandlik, Advocate for the respondent. Vide order dated 4.11.2015 three substantial questions of law were admitted, which are as under:- “1. Whether, the ITAT is justified in confirming the disallowance of Rs.3,10,000/- in respect of the partner's remuneration ignoring that no deduction in this regard was claimed by the appellant? 2. Whether, the ITAT has committed an error of law in not deciding the alternative ground raised by the appellant regarding set off of losses and depreciation carried forward from earlier years against the income determined/assessed? 3. Whether, in the facts and circumstances of the case ITAT is justified in dismissing the appeal in a summary manner?” Counsel for the parties jointly agreed that the question Nos. 1 and 3 are not required to be adjudicated and the Counsel for the appellant is not pressing those two grounds and those grounds may be treated as withdrawn. Regarding ground No.2 the Counsel for the parties jointly agreed that the said ground is required to be remanded to the Tribunal for adjudicating the said ground, which has not been adjudicated earlier. At the joint request of Counsel for the parties ground No.2 regarding set off of losses and depreciation carried forward from earlier years is remanded to the Income Tax Appellate Tribunal, Indore for its decision 1 HIGH COURT OF MADHYA PRADESH: BENCH AT INDORE NATIONAL LOK ADALAT

after giving adequate opportunity of hearing to the parties. With the aforesaid, ITA No.20 of 2015 stands disposed of. (Justice P. K. Jaiswal) (Sumit Nema) Member

Member pp

Digitally signed by Pankaj Pandey Date: 2018.05.10 14:50:33 +05'30'

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