DEPUTY COMMISSIONER OF INCOME-TAX vs. SPAN OVERSEAS LTD., PUNE

The Revenue has raised the following grounds of appeal:- 1. Whether on the facts and in the circumstances of the case and in law, the Ld CIT(A) is correct in deleting following additions made by the AO. i). Disallowance of expenditure relating to exempt income u/s 14A of Rs.11,81,094/- ii) Disallowance of commission of Rs.88,21,770/-

The present appeal is filed by the Revenue against the order of CIT(A) in deleting various additions made by the Assessing Officer.

Shri Achal Sharma appeared on behalf of Revenue and Shri Anand Kankariya appeared on behalf of assessee and put forward their rival contentions.

We have heard the rival contentions and perused the record. Briefly, in the facts of the case, original assessment was made by the Assessing Officer under section 143(3) of the Act vide order dated 30.12.2010. Thereafter, the Commissioner of Income Tax invoked the jurisdiction under section 263 of the Act and passed order setting aside the assessment order passed by Assessing Officer. The assessee filed an appeal against invoking of jurisdiction by the Commissioner under section 263 of the Act before the Tribunal. The appeal of assessee was decided vide ITA No.1223/PN/2013, relating to assessment year 2008-09, order dated 21.12.2015. The Tribunal held that exercise of jurisdiction by the Commissioner under section 263 of the Act was not correct and hence, the order was set aside. Meanwhile, the Assessing Officer passed order under section 143(3) r.w.s. 263 of the Act.

The CIT(A) noted that since the Tribunal had set aside the order passed under section 263 of the Act, then there is no merit in the impugned assessment order passed by the Assessing Officer under section 143(3) r.w.s. 263 of the Act. Hence, the Assessing Officer was directed to delete the additions made on various counts in the said order passed under section 143(3) r.w.s. 263 of the Act.

The Revenue is in appeal against the order of CIT(A) in this regard.

We find no merit in the grounds of appeal raised by the Revenue since the present appeal arises from an assessment order passed under section 143(3) r.w.s. 263 of the Act. However, the order passed by the Commissioner under section 263 of the Act has been set aside by the Tribunal and hence, we uphold the order of CIT(A) in directing the Assessing Officer to delete disallowance made on various counts in his order passed under section 143(3) r.w.s. 263 of the Act. The grounds of appeal raised by the Revenue are thus, dismissed.

In the result, the appeal of Revenue is dismissed.