2013 (8) TMI 1014 - AT - Income Tax

Summary

Issues involved: Cross appeals filed by the Assessing Officer (AO) and the assessee for the assessment years 2005-06 to 2007-08.

Assessing Officer's Appeal:
1. The AO charged interest u/s 234A, 234B, and 234C. The assessee contended that being a notified entity under the Special Court Act, no interest could be charged, as assets were under the control of the custodian. The First Appellate Authority (FAA) directed deletion of the interest.
2. The Departmental Representative (DR) relied on the AO's order, while the Authorized Representative (AR) mentioned a similar issue in another case. The Tribunal remanded the issue back to the FAA for re-adjudication.
3. The issue of interest for AYs 2006-07 and 2007-08 was also remitted back to the FAA. The AO's appeals for these years were partly allowed.

Assessee's Appeal:
1. The AR did not press grounds 1 to 3 for all three AYs, leading to their dismissal.
2. Ground 4 related to the disallowance of interest amounts. The Tribunal noted a similar issue in the case of the assessee's husband for previous years, which was remitted back to the AO for fresh adjudication. Consequently, the appeals of the assessee for all three AYs were partly allowed.

Conclusion: Both the AO's and the assessee's appeals were partly allowed, with certain issues remitted back for re-adjudication.