9911796707
TMI Blog2021 (11) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... Act" for brevity), challenging the order passed by the Income Tax Appellate Tribunal, Madras "A" Bench, in I.T.A.Nos.902, 903, 904, 907, 930 and 931/Mds/2011 for the Assessment Years 1999-2000, 2000-01, 2001-02, 2005-06, 2004-05 and 2006-07, respectively, and I.T.A.Nos.905 & 906/Mds/2010 for the Assessment Year 2002-03. 2.Though the Tax Case Appeals were admitted on 17.04.2014 to decide nine substantial questions of law, with the consent of the learned counsel on either side, the questions are re-framed as hereunder : "1.Whether on the facts and in the circumstances of the case, the Tribunal was justified in confirming the disallowance of 2% estimated expenses on exempted income, in the absence of a finding as to the incurring of expend ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... question of law, which pertains to disallowance of arrears of wages, arises for consideration only in one of the appeals, namely, T.C.A.No.704 of 2013 for the Assessment Year 1999-2000. 7.The 5th substantial question of law arises for consideration only in one of the appeals, namely, T.C.A.No.709 of 2013 for the Assessment Year 2006-07. 8.The 6th substantial question of law, which pertains to reopening of assessment under Section 147 of the Act, arises for consideration only in one of the appeals, namely, T.C.A.No.710 of 2013 for the Assessment Year 2002-03. 9.Heard Mr.R.Vijayaraghavan, learned counsel appearing for M/s.Subbaraya Aiyar Padmanabhan, learned counsel for the appellant/assessee and Mr.M.Swaminathan, learned Senior Standing C ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rd to the 4th substantial question of law, which relates to disallowance of arrears of wages, which arises for consideration only for one Assessment Year, namely, AY 1999-2000, the said question is covered by the decision of the Division Bench of this Court in the case of Commissioner of Income Tax, Chennai-I v. M/s.Kasturi and Sons Ltd. [T.C.No.958 of 2008, dated 28.08.2018] and was answered in favour of the assessee. Following the same, the substantial question of law No.4 is answered in favour of the appellant/assessee. 14.The 5th substantial question of law, which pertains to disallowance of ex-gratia payment, has been decided in favour of the assessee in the assessee's own case in Commissioner of Income Tax, Chennai v. The Karur V ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % to be a reasonable sum. 16.The assessee is on appeal before us questioning the same, by referring to the decision of the Hon'ble Supreme Court in the case of Maxopp Investment Ltd. v. Commissioner of Income Tax reported in (2018) 402 ITR 640 (SC), the decision of the Hon'ble Supreme Court in the case of Commissioner of Income Tax v. State Bank of Patiala reported in (2018) 102 CHH 289 ISCC and the decision of the High Court of Delhi in the case of Principal Commissioner of Income Tax-7 v. M/s.Punjab and Sind Bank [I.T.A.Nos.904 and 906 of 2019, dated 16.10.2019]. 17.The argument of the learned counsel for the assessee is that the recent decision of the High Court of Delhi had taken note of the decision of the Hon'ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... but merely directed the Assessing Officer to restrict the disallowance in this regard to 2% only on tax free bonds, finding the same to be reasonable. Had the CIT(A) adjudicated the correctness of the stand taken by the assessee and rendered a finding, the Tribunal could have tested the correctness of the same. Further, there has been development in law. We do not propose to deny the benefit of the assessee to place reliance on those decisions and put forth their submissions and for such purpose alone, we are inclined to remand the matter back to the Tribunal for fresh consideration. The substantial question of law No.1 is left open for fresh consideration by the Tribunal. 20.Insofar as the substantial question of law No.6 is concerned, w ..... X X X X Extracts X X X X X X X X Extracts X X X X
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