2014 (8) TMI 937 - AT - Income Tax

Rectification of mistake - Unexplained income - Held that - while deciding the appeal of Revenue (2015 (4) TMI 83 - ITAT AHMEDABAD) the issue was restored to the file of CIT(A). Since the main appeal has been restored to CIT(A), we are of the view the CO 2015 (4) TMI 87 - ITAT AHMEDABAD filed by the Assessee should also have been restored before CIT(A) instead of restoring it before A.O. - Since court have already restored the assessee s appeal 2015 (4) TMI 86 - ITAT AHMEDABAD to the file of CIT(A), the present miscellaneous application filed by the Revenue deserves to be dismissed. - Decided against Revenue.

Summary

Issues involved: Appeal against CIT(A)'s order, restoration of matters to CIT(A) and AO, coordination between appeal and cross-objection.

Analysis:
1. The Revenue filed an appeal against the CIT(A)'s order for AY 2007-08, which was restored to the file of the CIT(A) by ITAT for re-adjudication based on additional evidence submitted by the assessee. Simultaneously, the assessee filed a cross-objection (CO), which was restored to the file of the Assessing Officer (AO) by ITAT.

2. In response to a miscellaneous application filed by the Revenue, the parties presented their arguments. The Revenue contended that the issue raised in their appeal was remitted to the CIT(A) for re-adjudication, and therefore, the CO filed by the assessee should also be restored to the CIT(A). The assessee argued that the issue had already been addressed in a previous order.

3. The ITAT considered the submissions and referred to a previous order where a similar issue was addressed. The ITAT noted that since the appeal of the Revenue had been restored to the CIT(A), it was appropriate to also restore the CO of the assessee to the CIT(A) for consistency. Consequently, the CO of the assessee was allowed for statistical purposes.

4. As the CO filed by the assessee had already been restored to the file of the CIT(A) in a previous order, the present miscellaneous application filed by the Revenue was deemed unnecessary and dismissed.

5. The ITAT pronounced the order in court, dismissing the miscellaneous application filed by the Revenue.

This detailed analysis outlines the sequence of events, arguments presented by both parties, the ITAT's decision, and the final outcome of the case, ensuring a comprehensive understanding of the legal judgment.