2019 (8) TMI 170 - HC - Income Tax

Low tax effect - two addition was given up by the assessee before CIT(A) - ITAT set aside order of AO - reasonable opportunities of hearing given by CIT(A) but assessee chose to not represent - HELD THAT - It is apparent that the claim with regard to addition u/s 43B as well as the addition of Brought Forward Loss was given up. If that be so, then, the appeal would be covered under the low tax effect. We recorded the statement of Mr. Vora that the assessee has given up the claim with regard to addition un/s 43B as well as the addition of the Brought Forward Loss, as referred to above. - With the above, this Tax Appeal is disposed of.

Summary

Issues:
1. Appeal against the order of the Income Tax Appellate Tribunal for the Assessment Year 2014-15.
2. Whether the Appellate Tribunal erred in setting aside the Assessing Officer's order when the assessee did not represent its case?
3. Determination of tax effect on disputed additions and disallowances.
4. Consideration of claims given up by the assessee before the CIT(A).

Analysis:
1. The Tax Appeal under Section 260-A of the Income Tax Act, 1961 was filed by the Revenue against the order of the Income Tax Appellate Tribunal for the Assessment Year 2014-15.
2. The Revenue raised a substantial question of law regarding the Appellate Tribunal's decision to remit the matter to the CIT(A) due to the assessee's absence during the proceedings.
3. The Appellate Tribunal remitted the matter to the CIT(A) for fresh consideration as the assessee was not present. However, the counsel for the assessee pointed out the low tax effect and submitted a statement detailing the total addition and the tax effect at 30%.
4. The Revenue's counsel referred to the Assessing Officer's order showing a computation of the total income and various additions made, including under different sections of the Income Tax Act.
5. The counsel for the assessee confirmed giving up claims related to addition under Section 43B and Brought Forward Loss before the CIT(A), which significantly impacted the tax effect of the appeal.
6. Based on the claims given up by the assessee, the appeal was considered to fall under the low tax effect category, leading to the disposal of the Tax Appeal.

This detailed analysis covers the issues raised in the judgment, including the legal aspects and factual circumstances considered by the court in reaching its decision.