The Commissioner of Income Tax vs. M/s Deccan Tobacco Enterprises

I.T.A. No.13 of 2004 I.T.A. No.14 of 2004 I.T.A. No.15 of 2004

Heard.

By way of these Income Tax Appeals, appellant challenged the Second Appeal orders dated 03.09.2003 (received on 29.09.2003) passed by the Income Tax Appellate Tribunal, Cuttack Bench in respect of ITA No.158/CTK/93, ITA No.549/CTK/92 and ITA No.159/CTK/93, whereby the learned Tribunal has remitted the matter back to the Assessing Officer.

This Court by order dated 10.01.2005 has passed the following order framing question of law to be answered:

“Heard.

Admit.

The following question of law shall be determined:

Whether the Tribunal was justified in remanding the matter to the Assessing Officer so far as it relates to the claim of interest as business expenditure in the face of the order of the Tribunal in I.T.A. Nos. 157/CTK/93, 537/CTK/92, 197/CTK/92, 539/CTK/92, 158/CTK/93 and 159/CTK/1993 in which similar claim of the assessee has already been accepted.”

Learned counsel for the respondents, Mr.T.K.Satapathy, has supported the order the Assessing officer and submitted that the Tribunal has only remanded the matter back to the Assessing Officer for adjudication. In our considered opinion, the Tribunal has committed serious error.

We have gone through the record. Admittedly, the order of the Tribunal which was relied upon by the assessee, I.T.A. No.15 of 2004

was not reversed by any authority/forum, i.e., High Court or Supreme Court. In that view of the matter, the Tribunal has seriously committed an error in remitting the matters back to the Assessing Officer. At the most, the Tribunal ought to have accepted the principle and allow the Assessing Officer to make assessment on the basis of the Tribunal’s judgment referred to herein before.

In such view of the matter, the question is answered in favour of the assessee and against the Department; and the Tribunal has committed serious order in remanding the matter back to the Assessing Officer for fresh adjudication.

Issue urgent certified copy of the order on proper application.

..…………………..

K.S. JHAVERI

(Chief Justice)

……..…………………..

K.R. MOHAPATRA

(Judge) ss