2012 (9) TMI 844 - HC - Income Tax

Remand matter to CIT(A) by Tribunal - assessment of fringe benefit - Held that - As at this stage it would be essential to notice that the assessee claims that it was unaware of the order passed by the CIT(A) dismissing its Appeal No.157/2008-09, since it was disposed of ex-parte. It would be in the fitness of things that if the assessee approaches the Tribunal with an appeal against the said order the same would be considered having regard to the totality of the facts and if any application for condonation of delay is made the same shall be considered and the appeal will be heard.

Summary

Issues:
1. Whether the Tribunal erred in directing a remand of the matter to the CIT(A) regarding the assessment of fringe benefits.
2. Whether the CIT(A) made an error in treating the appeals as composite, leading to confusion.

Analysis:

Issue 1:
The High Court addressed the issue of whether the Tribunal's decision to remand the matter to the CIT(A) concerning the assessment of fringe benefits was appropriate. The Revenue was aggrieved by the Tribunal's order directing a remand in relation to the findings on fringe benefits. The Court noted that the CIT(A) had decided the entire matter, including the assessment of income and fringe benefits, in Appeal No.145/2008-09, despite a separate appeal, Appeal No.157/2008-09, specifically addressing the fringe benefit tax issues. The Tribunal's order was modified to exclude the fringe benefit tax aspect, as Appeal No.157/2008-09 had already attained finality. The confusion arose from the CIT(A) treating the appeals as composite, which was not the case.

Issue 2:
The Court also considered the aspect where the assessee claimed unawareness of the CIT(A)'s order dismissing Appeal No.157/2008-09, passed ex-parte on 11.10.2011. The Court highlighted that if the assessee were to appeal against this order, the Tribunal would consider it, taking into account all relevant facts. Any application for condonation of delay would also be reviewed. The appeal was disposed of with these considerations in mind.

In conclusion, the High Court clarified the confusion stemming from the CIT(A)'s treatment of appeals as composite and addressed the issue of remanding the matter to the CIT(A) concerning fringe benefit assessments. Additionally, the Court provided guidance on the assessee's recourse in appealing the CIT(A)'s order on fringe benefits, emphasizing fair consideration of all aspects and potential delays.