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Income Tax Appellate Tribunal, ‘B’ BENCH, CHENNAI
Before: SHRI N.R.S. GANESAN & SHRI A. MOHAN ALANKAMONY
आदेश /O R D E R
PER N.R.S. GANESAN, JUDICIAL MEMBER:
The Stay Petition filed by the assessee was posted for hearing today. While arguing the Stay Petition, both Ld. representative for the assessee and the Ld. Departmental Representative submitted that the CIT(Appeals) directed the Assessing Officer to re-examine the matter for deduction under Section 10A of the Income-tax Act, 1961 (in short 'the Act'). In fact, the assessee made a claim originally in the return of income under Section 10B of the Act. The CIT(Appeals) found that due to lack of requisite approval from the competent authority, the assessee is not entitled for deduction under Section 10B of the Act. However, the CIT(Appeals) directed the Assessing Officer to examine the alternative claim under Section 10A of the Act.
The main contention of the assessee before this Tribunal is that the CIT(Appeals) has no authority to remand back the matter.
According to the Ld. representative, the CIT(Appeals) has to either decide the issue on merit by himself or he has to reject the claim of the assessee. Therefore, the Ld. representative prayed to take up the appeal itself for hearing and the matter may be remanded back to the file of the Assessing Officer to examine the alternative claim of the assessee under Section 10A of the Act in exercise of appellate jurisdiction vested on this Tribunal. The Ld. D.R. also has no objection to take up the appeal itself for hearing and to remit the matter back to the file of the Assessing Officer by the order of this Tribunal. Therefore, with the consent of both the representatives of the assessee and the Revenue, the appeal itself was taken up for hearing.
As rightly submitted by the Ld. representative for the assessee and Ld. Departmental Representative, the alternative claim of deduction under Section 10A of the Act needs to be examined on merit. Though the CIT(Appeals) directed the Assessing Officer to examine the matter afresh, this Tribunal is of the considered opinion that the CIT(Appeals) has no power to set aside the matter to the file of the Assessing Officer. As rightly submitted by the Ld. representative for the assessee, the CIT(Appeals) has to examine the matter himself on merit. Since the CIT(Appeals) has not examined the matter on merit and he simply remanded the matter back to the file of the Assessing Officer. This Tribunal is of the considered opinion that in the interest of justice, the matter needs to be re-examined by the Assessing Officer.
Accordingly, in exercise of the appellate jurisdiction conferred on this Tribunal under the provisions of Income-tax Act, the orders of the authorities below are set aside and the alternative claim made by the assessee under Section 10A of the Act is remitted back to the file of the Assessing Officer. The Assessing Officer shall examine the matter in the light of the material that may be filed by the assessee and thereafter decide the issue afresh on merit in accordance with law, after giving a reasonable opportunity to the assessee.
In view of the order passed in the appeal itself, the Stay Petition filed by the assessee becomes infructuous.
In the result, the appeal filed by the assessee is allowed. However, the Stay Petition is dismissed.