SUYASH AUTO PRESS COMPONENTS AND ASSEMBLYS PVT.LTD,PUNE vs. INCOME-TAX OFFICER, WARD - 6 (4), PUNE

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ITA 1101/PUN/2019Status: DisposedITAT Pune06 July 2022AY 2015-163 pages
AI SummaryRemanded

What did the Tribunal hold?

The Tribunal, in the interest of justice and with the consent of both parties, decided to remand the issues back to the CIT(A) for fresh consideration. The assessee was granted liberty to file supporting evidence.

What were the facts?

The assessee appealed against the CIT(A)'s order which dismissed the grounds challenging disallowances made under Section 14A and Section 36(1)(ii) without providing the assessee an opportunity to be heard. The assessee requested a chance to present its case before the CIT(A).

What were the issues?

Whether the CIT(A) erred in dismissing the appeal without affording the assessee an opportunity to present its case. The appeal also concerns disallowances made under Section 14A and Section 36(1)(ii).

Which sections of the Income-tax Act were involved?

Section 14A,Section 36(1)(ii)

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “B” BENCH, PUNE

Before: SHRI R.S. SYAL & SHRI S.S. VISWANETHRA RAVI

For Appellant: Shri Rohit Tapadiya
For Respondent: Shri M.G. Jasnani

आदेश / ORDER PER S.S. VISWANETHRA RAVI, JM :

1.

This appeal by the assessee against the order dated 28-05-2019 passed by the Commissioner of Income Tax (Appeals)-4, Pune [‘CIT(A)’] for assessment year 2015-16.

2.

The assessee raised three grounds of appeal

which are as under :

1. The learned A.O. erred in (and CIT(A)) in making disallowing under section 14A r.w.s. Rule 8D of Rs.1,68,359/-. 1.1 The learned AO (and CIT(A)) erred in considering investments made in partnership firm from which no exempt income has been earned during the FY 2014-15 (relevant to AY 2015-16), while computing disallowance u/s. 14A.

2. The learned AO erred in disallowing the claim of deduction for performance incentive (being part of remuneration) paid to directors under section 36(1)(ii) of the Act of Rs.3,13,652/- being 50% of the total expenses incurred.”

3.

At the outset, we note that vide Para No. 2 and also Para No. 3.2 of the impugned order, we note that the CIT(A) disposed off the appeal dismissing the grounds raised challenging the action of AO against the disallowances made u/s. 36(1)(ii) and u/s. 14A r.w. Rule 8D of the Rules in the absence of assessee. The ld. AR submits that no opportunity was available to the assessee to support the grounds raised before the CIT(A). If this Tribunal affords an opportunity for the assessee to prosecute grounds raised before the CIT(A), the assessee is ready to substantiate its claim before the First Appellate Authority. The ld. DR did not report any objection in remitting the matter to the file of CIT(A). Therefore, in the facts and circumstances of the case and submissions of ld. AR and ld. DR in the interest of justice, we deem it proper to remand the issues to the file of CIT(A) for its fresh consideration. The assessee is liberty to file evidence, if any, in support of its claim. Thus, the grounds raised by the assessee are allowed for statistical purpose.

4.

In the result, the appeal of assessee is allowed for statistical purpose.

Order pronounced in the open court on 06th July, 2022.

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