What did the Tribunal hold?

The tribunal dismissed the appeal where withdrawal was sought. For the cross-appeals, the tribunal restored the matter to the CIT(A) for fresh adjudication on both the legal issue of reopening and the merits.

The assessee trust filed appeals against orders of the CIT(A) for different assessment years. In one appeal (ITA No. 1182/Chd/2017), the assessee sought withdrawal. In other cross-appeals (ITA Nos. 685 & 675/Chd/2018), the CIT(A) had not adjudicated a legal issue regarding reopening of assessment.

What were the issues?

The primary issue was the validity of reopening of assessment. In one case, the assessee withdrew the appeal. In another, the CIT(A) failed to decide the reopening issue, leading to a remand.

M/S Chitkara Educational Trust vs DCIT | ITAT Chandigarh 2018

आदेश/Order

Per Bench:

The present appeals have been preferred by the assessee for different

assessment years against the separate orders of the Commissioner of

Income Tax (Appeals)-2, Chandigarh [hereinafter referred to as ‘CIT(A)’].

First, we shall deal with the assessee’s appeal in ITA No.

1182/Chd/2017 for assessment year 2010-11.

In this appeal, at the outset, the Ld. Counsel for the assessee has

submitted that the assessee has assailed the order of the CIT(A) on legal

issue regarding validity of the reopening of the assessment, whereas, the

matter has been decided on merits in favour of the assessee. He has further

stated that since the Revenue has not filed any appeal on merits because of

the low tax effect, hence, at this stage he does not press this appeal and

seeks permission for withdrawal of the same. However, the Ld. Counsel

has submitted that the assessee reserves the right to agitate the issue

regarding the validity of reopening in matters relating to other assessment

years.

The Ld. DR has not objected to the above withdrawal of the appeal

and the same is dismissed and ‘withdrawn’, however, the assessee’s

right is reserved to agitate the legal issue in cases relating other

assessment years.

The appeal filed by the assessee is dismissed as ‘withdrawn’

ITA Nos.685 & 675/Chd/2018 for Assessment year 2009-10

These are cross appeals one by the assessee and other by the

Revenue. At the outset, Ld. Counsel for the assessee has submitted that a

ITA Nos. 1182/ Chd/2017, 685 & 675/Chd/2018- M/s Chitkara Educational Trust, Chandigarh 3

specific ground was taken before the Ld. CIT(A) regarding the validity of

the reopening of the assessment but the Ld. CIT(A) failed to adjudicate

upon the same. However, the case has been decided on merits in favour of

the assessee. The assessee, thus, has assailed the order of the CIT(A) for

non-adjudication on the legal issue regarding validity of the re-opening of

the assessment.

On the other hand, Revenue has come in appeal against the order of

the CIT(A) agitating the action of the CIT(A) in deleting the impugned

additions made by the Assessing officer while adjudicating on factual

matrix of the case. .

Both the Ld. representatives of the parties have submitted that since

the legal issue has not been decided by the CIT(A), hence, the matter may

be restored to the file of the CIT(A) for adjudication afresh. Shri Vineet

Krishan, Ld. Counsel for the assessee has also submitted that he will not

have any objection, if the issue on merits as agitated by the Revenue is

also restored to the file of the CIT(A) to be decided alongwith the legal

issue taken by the assessee.

In view of the above submissions, the matter in both the appeals is

restored to the file of the CIT(A) with a direction to adjudicate the same

afresh after taking into consideration the original ground of appeals taken

by the assessee in first appeal as well as grounds of appeal / issue raised

by the parties in the present appeals before us. Alongwith copy of the

order, grounds of appeal taken by both the parties in their appeals also to

be sent to the CIT(A) for adjudication afresh as directed above.

ITA Nos. 1182/ Chd/2017, 685 & 675/Chd/2018- M/s Chitkara Educational Trust, Chandigarh 4

In the result, ITA No. 1182/Chd/217 is dismissed as withdrawn, where ITA Nos. 685/Chd/2018 & 675/Chd/2018 are treated as allowed for statistical purposes.

Order pronounced in the Open Court

Sd/- Sd/- (अ�नपूणा� गु�ता / ANNAPURNA GUPTA) (संजय गग� / SANJAY GARG) लेखा सद�य/ Accountant Member �या�यक सद�य/ Judicial Member Dated : 16 .10.2018 “आर.के.”

आदेश क� ��त�ल�प अ�े�षत/ Copy of the order forwarded to : 1. अपीलाथ�/ The Appellant 2. ��यथ�/ The Respondent 3. आयकर आयु�त/ CIT 4. आयकर आयु�त (अपील)/ The CIT(A) 5. �वभागीय ��त�न�ध, आयकर अपील�य आ�धकरण, च�डीगढ़/ DR, ITAT, CHANDIGARH 6. गाड� फाईल/ Guard File

आदेशानुसार/ By order, सहायक पंजीकार/ Assistant Registrar

M/S CHITKARA EDUCATIONAL TRUST,CHANDIGARH vs. DCIT, C-1, (E), CHANDIGARH

What did the Tribunal hold?

What were the facts?

What were the issues?

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