2013 (5) TMI 1029 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order for assessment year 2005-2006.

Grounds of Appeal:
1. CIT(A) erred in giving notice of enhancement u/s.251(2) of the I.T. Act 1961 based on third party's order.
2. CIT(A) erred in enhancing addition based on illegal notice issued.
3. CIT(A) erred in directing AO to add deemed dividend from Mahavir Inductomelt Pvt. Ltd.
4. CIT(A) erred in confirming addition for alleged deemed dividend u/s.2(22)(e) from Mahavir Rolling Mills Ltd.
5. Appellant seeks leave to modify grounds of appeal.

Judgment Details:
The appellant's counsel argued that the case should be remanded to CIT(A) for a fresh order as certain pleas were not considered. The AO's failure to consider depreciation under income tax law and the commercial angle of loans were highlighted. The DR contended that while depreciation issue was not addressed, the commercial angle of loans was considered by CIT(A) based on AO's orders. After careful consideration, the Tribunal found that the appellant's pleas were not fully adjudicated by CIT(A). Therefore, in the interest of justice, the order was set aside with directions for a fresh order after allowing both parties a hearing to address and decide on the pending pleas.

Outcome:
The appeal of the assessee was allowed for statistical purposes, and the order was pronounced in Open Court.