DCIT, BANGALORE vs. M/S STUMPP SCHUELE & SOMAPPA PVT. LTD., BANGALORE

This appeal by the revenue is directed against the order of the CIT(A), LTU, Bangalore, dated 20/03/2014 setting aside the issue of claim of deduction u/s 43B of the Income-tax Act, 1961 [hereinafter referred to as 'the Act' for short] to the Assessing Officer (AO) for the assessment year 2010-11. It is the case of the revenue that the CIT(A) does not have the power to remand back the issue.

M/s.Stumpp Schuele & Somappa Pvt.Ltd. Page 2 of 3 2. Brief facts of the case are that the assessee-company filed its return of income for the relevant assessment year on 14/10/2010. During the assessment proceedings u/s 143(3) of the Act, the AO made certain disallowances and consequential additions to the returned income of the assessee and brought them to tax. Aggrieved, assessee preferred an appeal before the CIT(A) and has also submitted a table showing the working of deduction u/s 43B to be allowed for assessment year 2010-11. The assessee had filed details of disallowances made of bonus, leave, gratuity provision for assessment year 2009-10 but paid in assessment year 2010-11. The CIT(A) set aside the assessment to the file of the AO and directed the AO to call for evidence of such payment and allow the same if found to be correct. It is the case of the revenue that the CIT(A) ought to have called for a remand report from the AO and decided the issue on merits but he is divested of power to remit the issue to the file of the AO for verification and therefore his order is not maintainable.