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सुनवाई क� तार�ख / Date of Hearing : 11-01-2017 घोषणा क� तार�ख / Date of Pronouncement : 20.01-2017 आयकर अ�ध�नयम, 1961 क� धारा 254(1) के अ�तग�त आदेश Order u/s.254(1)of the Income-tax Act,1961(Act) Per Pawan Singh, J.M. �या�यक सद�य iou iou iou �संह के अनुसार: iou 1. The present appeal by assessee u/s 253 of the Income-Tax Act is directed against the order of ld. Commissioner of Income Tax (Appeals)-20, Mumbai [for short the CIT(A)] dated 24.09.2014 for Assessment Year(AY) 1990-91. The assessee has raised the following grounds of appeal:
1. On the facts and circumstances, the Ld. CIT(A) is not justified in confirming the order of respondent passed in contravention of his own direction and thus the said order is bad in law and accordingly liable to be quashed.
2. On the facts and circumstances, the Ld. CIT(A) is not justified in confirming the computation of interest u/s 234B of the IT Act and thus liable to be deleted.
2. The brief facts of the case are that for relevant AY the assessment was completed on 16.03.1993 u/s 144 assessing the total income of Rs. 2,50,000/-. This order was set-aside by the ld. CIT(A) on 30.03.1994. Consequent upon the order u/s 143(3) r.w.s. 250 was passed on 27.03.1996 determining the total income of Rs. 38,91,500/-. The order was and again set-aside by the ld. CIT(A) on 31.03.1997 by giving certain direction and accordingly order was passed protectively on 25.03.1999 at Rs. 29,87,606/-. On appeal before the ITAT, the addition was reduced by giving relief of Rs. 28,47,500/-. Consequent upon the order of ITAT, the Assessing Officer (AO) passed order determining the income at Rs. 1,40,606/-. This order was rectified by giving credit of Rs. 1,00,000/- paid on 23.12.2005 pursuant to the Tribunal stay order and re-determined the interest u/s 234A, 234B and 220(2) without disturbing tax liability including surcharge. The assessee filed an application u/s 154 for calculation of correct interest u/s 234A and 234B, the application was dismissed by AO. The order of dismissal of application u/s 154 was challenged before the ld. CIT(A) wherein a direction was given on 27.05.2011 to re-compute the interest. The AO dismissed the same without considering the contention submitted vide letter dated 23.08.2011 in its vide order dated 01.09.2011. The assessee again filed appeal before the ld. CIT(A) and the same was decided on 07.08.2013 with a specific direction to re-calculate the interest. The AO further directed to pass the speaking order in case the contention of assessee is not acceptable to him. The AO in compliance of order dated 07.08.2013 passed the giving effect order on 11.10.2013 without giving any opportunity of hearing. The assessee again approached the ld. CIT(A) on 13.12.2013, wherein the appeal of the assessee was dismissed by ld. CIT(A) holding that the assessee has not filed any application for rectification before the AO vide order dated 24.09.2014. Further aggrieved by the order dated 29.09.2014, the assessee filed the present appeal before us.
We have heard the ld. Authorized Representative (AR) of the assessee and the ld. Departmental Representative (DR) for the revenue and gone through the orders of authorities below. The Ld. AR of the assessee argued that the authorities below instead of giving proper and fair opportunity of hearing passed the order. It was argued that the ld. CIT(A) vide order dated 07.08.2013 the AO was specifically directed to pass speaking order in case contention of assessee is not acceptable to him. Despite the direction of ld. CIT(A), the AO neither gave opportunity of hearing nor passed the detailed order. When grievance was raised before the ld. CIT(A), his appeal was again dismissed for technical reasons holding that the assessee has not filed any application for rectification before the AO. On the other hand, ld. DR for the Revenue supported the order of authorities below.
We have noticed that this case has unique history. The case under consideration pertains to AY 1990-91. This case has travelled to the Tribunal twice and four times before the First Appellate Authority (FAA). Considering the grievance of the assessee, we direct the AO to pass the order in accordance with the specific direction contained in order dated 07.08.2013 passed by ld. CIT(A)-20/11(3)(3)/IT-227/2012-13. The AO shall provide opportunity of hearing before passing the order. As the case pertains to AY 1990-91. The AO is further directed to pass the order within 60 days of receipt of order. The assessee is also directed to fully cooperate with the AO and provide all necessary information and documents including his provisional (draft) calculation of interest for consideration at the end of AO. With these directions the appeal of the assessee is allowed. As a result, appeal filed by the assessee is allowed.