2018 (12) TMI 829 - HC - Income Tax

Scrutiny assessment - remanding of matter by ITAT to the C.I.T. (A) to enable him to pass a speaking and reasoned order - Held that - We are of the view that, firstly, no substantial question of law arises for consideration in this appeal. Even otherwise, the matter has been remanded for a fresh consideration, on reasons, which we find acceptable. Therefore, we do not find any ground in this appeal. Reliance on the judgment in the case of DELL INTERNATIONAL SERVICES INDIDA (P.) LTD. v. ASSISTANT COMMISSIONER OF INCOME TAX reported in 2016 (5) TMI 114 - KARNATAKA HIGH COURT to contend that the Tribunal ought to have arrived at a conclusion rather than remanding the matter further back to the Assessing Officer but the facts narrated therein would indicate that the matter was initially remanded by the High Court to the Tribunal for a fresh consideration, but the Tribunal further remanded the matter back to the Assessing Officer. Therefore, we are of the view that the said judgment would not help the appellant, in any manner. No substantial question of law

Summary

Issues:
1. Assessment order for the year 2012-13 with significant additions.
2. Tribunal's remand for fresh consideration.
3. Legal grounds regarding the correctness of the assessable entity post-merger.
4. Applicability of the judgment in DELL INTERNATIONAL SERVICES INDIDA (P.) LTD. v. ASSISTANT COMMISSIONER OF INCOME TAX.

Analysis:

1. The appellant, a private limited company, declared nil income for the assessment year 2012-13 after setting off a substantial loss. However, the assessment order resulted in significant additions amounting to &8377; 37,64,47,807. This led to appeals before the Commissioner of Income Tax (Appeals) and subsequently to the Tribunal by both the assessee and the Revenue.

2. The Tribunal remanded the matter back to the Commissioner of Income Tax (Appeals) for a fresh consideration, as it found the earlier order to be cryptic and lacking a clear explanation of the findings regarding the objections raised. The Tribunal emphasized the need for a speaking and reasoned order to address the legal aspects before delving into the merits of the case.

3. The legal grounds raised by the appellant pertained to the correctness of the assessable entity post-merger. The Commissioner of Income Tax (Appeals) had found no illegality in the assessment order, despite discrepancies in the designation of the entity. The Tribunal's decision to remand the matter was based on the need for a clearer understanding of the findings on these legal grounds.

4. The appellant's reliance on the judgment in DELL INTERNATIONAL SERVICES INDIDA (P.) LTD. v. ASSISTANT COMMISSIONER OF INCOME TAX was considered by the Court. The appellant argued that the Tribunal should have arrived at a conclusion rather than remanding the matter further. However, the Court distinguished the facts of the cited judgment, where the matter was remanded back to the Assessing Officer after an initial remand by the High Court to the Tribunal. Consequently, the Court dismissed the appeal due to the absence of any substantial question of law.

In conclusion, the judgment highlighted the importance of clear and reasoned orders in tax assessments, emphasizing the need for a thorough consideration of legal aspects before addressing the merits of the case. The Court's decision was based on the procedural requirements and the specific circumstances of the case, ultimately leading to the dismissal of the appeal.