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Income Tax Appellate Tribunal, “E” BENCH, MUMBAI
Before: SHRI N.K. BILLAIYA & SHRI SANJAY GARG
आदेश / O R D E R
PER N.K. BILLAIYA, AM:
This appeal by the assessee is preferred against the order of the Ld. CIT(A)-32, Mumbai dated 22.2.2012 pertaining to Assessment year 2000-01.
The grievance of the assessee revolves around the disallowance made u/s. 14A of the Act. The assessee has also raised an additional ground by which it has challenged the jurisdiction of the AO in making the reassessment on a completed assessment by invoking the provisions of Sec. 147 of the Act. The claim of the assessee is that the reopening is bad in law as per proviso to Sec. 14A of the Act.
A perusal of the order of the Ld. CIT(A) shows that this is not the first round of litigation in the earlier round, a similar additions were made by the AO which were confirmed by the Ld. CIT(A) and the matter travelled upto the Tribunal. The Tribunal vide order dated 25.5.2009 in had also the occasion to consider this additional plea of the assessee relating to the jurisdiction of the AO in reopening the assessment qua proviso to Sec. 14A.
We find that at para-4 of its order the Tribunal found that there is no finding by the Ld. CIT(A) on this issue. In view of the same, the Tribunal deem it fit and proper to remand the issue to the file of the Ld. CIT(A) for consideration of this ground of appeal.
5. A perusal of the impugned order of the Ld. CIT(A) shows that once again the Ld. CIT(A) has failed to decide this issue. The order of the Ld. CIT(A) is in gross violation of the directions of the Tribunal. We are therefore left with no choice but to restore the issue once again to the file of the Ld. CIT(A). The Ld. CIT(A) is directed to carefully understand the facts of the case and the additional ground raised by the assessee which read as under:
“1.1. Without prejudice to the ground already raised, the appellant submits that the Ld. CIT(A)-32, Mumbai erred in not dealing with the ground on initiation of reassessment proceedings by the Ld. AO which was taken by the Appellant before the Hon’ble Tribunal in the first round and which was set aside to his file by the Hon’ble Tribunal.
1.2. While doing so the Ld. CIT(A) failed to appreciate that, a) The initiation as well as completion of re-assessment by the AO simply for making a disallowance u/s. 14A of the Act for the assessment year under consideration is in contravention of the provisions of the Act. b) Without prejudice to the above, in any case the appellant’s case did not fall within the parameters of Sec. 147 so as to enable the AO to re-open the assessment originally completed u/s. 143(3) of the Act. c) In the facts and the circumstances of the case, and in law the reassessment framed is bad, illegal and void and deserves to be quashed.” and decide the same after giving reasonable opportunity of being heard to the assessee.
In the result, the appeal filed by the assessee is treated as allowed for statistical purpose.
Order pronounced in the open court on 8th October, 2015