2018 (3) TMI 77 - AT - Income Tax

Estimation of income on account of bogus/unverifiable purchases - matter set aside to the file of the AO to decide the same afresh - Tribunal has set aside the assessment to decide the issue of estimation of income to the file of the AO for fresh assessment after the judgment is delivered in the case of Anuj Kumar Varshney and others 2015 (4) TMI 533 - ITAT JAIPUR - Decision in the case of Anuj Kumar Varshney was challenged before the HC and still pending - Held that - From the perusal of material available on record, it is noted that the issue involved in the assessment proceedings related to unverified purchases amounting to ₹ 59,88,350. The Co-ordinate Bench vide its order has set aside the matter to the file of the AO to decide the same afresh after the judgement in the case of Anuj Kumar Varshney & Others vs. ITO (Supra) is delivered. From the perusal of records, it is also noted that the provisions of Section 153(2A) of the Act were not brought to the notice of the Coordinate Bench. We accordingly recall the order passed by the Coordinate Bench dated 7.4.2016 and direct the Registry to fix the matter for fresh hearing in due course.

Summary

Issues:
1. Setting aside of assessment by ITAT for fresh assessment.
2. Applicability of Section 153(2A) of the IT Act 1961.
3. Alleged factual inaccuracy in the order regarding acceptance by Departmental Representative.
4. Request for rectification under section 254(2) of IT Act 1961.

Analysis:
1. The Revenue filed a Miscellaneous Application against the ITAT order dated 07.04.2016, which set aside the assessment for the AY 2009-10 related to unverified purchases. The ITAT directed a fresh assessment after the judgment of the Hon’ble High Court is delivered in a specific case. The Revenue argued that setting aside assessments for an uncertain future is unjustifiable, citing the limitation period under section 153(2A) of the IT Act 1961. The Revenue contended that the ITAT's decision was not in accordance with the law as no limitation has been prescribed for the High Court's decision. The Revenue also disputed the observation in the order regarding the agreement of both parties, stating that no such acceptance was given by the Departmental Representative.

2. The ITAT noted that the issue of unverified purchases amounting to a specific sum was set aside for fresh assessment after the High Court's judgment. However, it was observed that the provisions of Section 153(2A) of the Act were not brought to the notice of the Coordinate Bench during the initial proceedings. The ITAT, considering this, decided to recall the order passed by the Coordinate Bench and directed the matter to be fixed for fresh hearing in due course.

3. The ITAT disposed of the Miscellaneous Application filed by the Revenue accordingly, recalling the previous order for fresh hearing. The decision was pronounced in the open court on 04/01/2018.

4. In conclusion, the ITAT's judgment addressed the issues raised by the Revenue regarding the setting aside of the assessment for fresh assessment, the applicability of Section 153(2A) of the IT Act 1961, alleged factual inaccuracies, and the request for rectification under section 254(2) of the IT Act 1961. The ITAT's decision to recall the order and direct a fresh hearing demonstrated a procedural step to ensure compliance with relevant legal provisions and address the concerns raised by the Revenue.