2010 (12) TMI 1278 - AT - Income Tax

Summary

Issues involved: Appeal by Revenue against orders of CIT(A) for assessment years 2002-03 and 2003-04 regarding accumulation u/s 11(2) and exemption u/s 11 and 13(1)(c) of the I.T. Act.

Assessment Year 2002-03:
1. The Revenue contended that the CIT(A) erred in allowing accumulation u/s 11(2) without a specific purpose, as required by law.
2. The Revenue argued that the CIT(A) was unjustified in granting exemption u/s 11 based on a previous ITAT decision.

Assessment Year 2003-04:
1. The Revenue claimed that the CIT(A) wrongly allowed exemption u/s 11 despite a violation of u/s 13(1)(c) of the I.T. Act.
2. The Revenue also challenged the allowance of accumulation u/s 11(2) without a specific purpose.

Upon review, the ITAT noted that the issues raised in the current appeals had already been addressed in previous ITAT decisions for the same assessment years. In those cases, the orders of the CIT(A) were set aside for fresh consideration before the Assessing Officer. Given the related nature of the matters, the current appeals by the Revenue were also remanded to the AO for reevaluation, ensuring the assessee's right to a fair hearing.

As a result, the appeals by the Revenue were allowed for statistical purposes, indicating a procedural victory rather than a substantive decision on the merits of the issues raised.