2015 (3) TMI 1415 - AT - Income Tax

Disallowance retention money as well as on licence fee - case of the assessee was picked up for scrutiny assessment and the assessment u/s.143(3) r.w.s.254 was framed - CIT-A deleted the addition - HELD THAT - As decided in NARAN LALA PVT. LTD. VERSUS THE D.C.I.T., NAVSARI CIRCLE, NAVSARI AND VICE-VERSA 2011 (6) TMI 1019 - ITAT AHMEDABAD complete facts of the case were not examined and verified including the amount if any incurred by the assessee for business purpose out of the retention amount. After passing of the impugned orders, there is a change on the matter in issue and the points have now been decided in favour of the assessee which is also not disputed by the learned DR. However, the authorities below have no occasion to examine the facts of the case in the light of the above decisions cited by the learned Counsel for the assessee. Both the parties agreed that the matter may be remanded to the file of the AO for reconsideration of the issue in the light of the decision delivered by the Hon'ble Punjab Haryana High Court 2009 (11) TMI 995 - PUNJAB AND HARYANA HIGH COURT and the Hon'ble Supreme Court ( 2009 (5) TMI 16 - SUPREME COURT ). We find force in the submissions of both the parties that the matter requires reconsideration in the light of the above decisions. Thus the issue is restored back to the file of AO to decide the same - Appeal of the Revenue is allowed for statistical purposes.

Summary

Issues:
Appeal against deletion of addition on account of disallowance retention money for AY 2002-03.

Analysis:
The appeal pertains to the deletion of an addition of Rs.18,41,107 made on account of disallowance retention money for Assessment Year (AY) 2002-03. The case involves a second round of litigation where the Assessing Officer (AO) confirmed the addition, which was later appealed by the assessee before the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) allowed the appeal considering the submissions of the assessee and previous orders. The Revenue, aggrieved by the CIT(A)'s decision, filed an appeal before the Appellate Tribunal. The Tribunal noted that the issue had been decided in favor of the assessee in previous years and referred to judgments by the Hon'ble Apex Court and High Court. The Tribunal directed the AO to reconsider the issue in light of the new developments and previous decisions. The issue was restored back to the AO for further examination based on the Tribunal's directions and the judgments cited. Consequently, the appeal of the Revenue was allowed for statistical purposes.

This judgment highlights the importance of considering previous decisions and legal precedents in tax matters. The Tribunal emphasized the need for a thorough examination of facts and compliance with legal principles. The decision underscores the significance of following judicial directions and providing reasonable opportunities for parties to present their case. The judgment showcases the iterative nature of legal proceedings, where issues may be revisited based on new developments and legal interpretations. Overall, the case demonstrates the meticulous approach required in tax assessments and the adherence to legal standards to ensure fair and just outcomes.