DY. COMMISSIONER OF INCOME TAX, CIRCLE-1(2), HYDERABAD vs. COMPUGAIN SOLUTIONS INDIA PRIVATE LIMITED, HYDERABAD

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ITA 1081/HYD/2019Status: DisposedITAT Hyderabad11 January 2022AY 2017-183 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal found merit in the assessee's submission and remitted the appeal back to the AO. The AO was directed to consider the Section 10AA deduction claim afresh after providing the assessee an opportunity of being heard.

What were the facts?

The Revenue appealed against the CIT(A)'s order which remitted the matter back to the AO for reconsideration of a Section 10AA deduction claim. The assessee had filed Form 56F, but the CPC completed the assessment under Section 143(1) without considering this claim.

What were the issues?

Whether the CIT(A) had the power to remit the matter back to the AO, and whether the Section 10AA deduction claim was correctly considered during the assessment.

Which sections of the Income-tax Act were involved?

Section 10AA,Section 143(1)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, HYDERABAD BENCH “A”, HYDERABAD

Hearing: 04/01/2022Pronounced: 11/01/2022

This appeal is filed by the Revenue against the order of the Ld. CIT(A)-1, Hyderabad in appeal No.10219/2018-19/DCIT, CPC, Bangalore/CIT(A)-1/Hyd/2019-20, dated 24/04/2019 passed U/s. 143(1) r.w.s250(6) of the Act for the A.Y. 2017-18.

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 disallowance of claim of deduction U/s. 10AA by CPC is bad in law and against the provisions of the Income Tax Act. 2. Any other ground that may be urged at the time of hearing.”

3.

At the outset, the ld. DR submitted that the Ld. CIT (A) has remitted back the matter to the file of the Ld. AO with direction to consider the case law cited by the assessee and thereafter pass appropriate order. The Ld. DR further pointed out that the ld. CIT (A) does not have power under the provisions of the Act to remit back the matter to the Ld.AO and therefore requested the Bench to set-aside the order of the ld. CIT (A). The ld. AR on the other hand argued by stating that the assessment was completed U/s. 143(1) of the Act by the CPC without considering the claim of deduction U/s. 10AA of the Act though the assessee had filed the requisite form No. 56F of the Rules. The Ld. AR further requested that the Bench may remit back the matter to the file of the Ld. AO with direction to consider the deduction claimed by the assessee in the light of the decision cited before the Ld. CIT (A) and thereafter pass appropriate order in accordance with law and merit.

4.

We have heard the rival submissions and carefully perused the materials on record and find merit in the submission of the Ld. AR. Accordingly, we hereby remit the appeal back to the file of the Ld. AO in order to consider the issue afresh in the light of the submission made by the Ld. AR before us and pass appropriate order in accordance with law and merit after providing proper opportunity to the assessee of being heard.

5.

In the result, appeal of the Revenue is allowed for statistical purposes. Pronounced in the open Court on the 11th January, 2022.

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