INCOME TAX ACT, 1961

Section 246A

Appeal [CIT(A)] - Remanding of issue to AO - AO having necessary details before him rejected assessee's claim for mere want of revised return -

AO rejected assessee's claim of prior period expenses on the ground of no such claim made by assessee in the original return of income and no revised return filed by assessee. Assessee made fresh claim before CIT(A) and CIT(A) allowed the same. Tribunal set aside the order of CIT(A) holding that as no opportunity was given to AO to examine the material, therefore, matter needed to be remanded to AO for verification afresh. Held: Tribunal accepted the view taken CIT(A) that if a claim is otherwise sustainable in law, then appellate authorities are empowered to entertain the same. This was a case where details were placed before AO who declined to entertain the claims, only on the ground that they did not form part of assessee's original return and that assessee had not made a course correction by filing a revised return. As Tribunal had not reached to a conclusion and expressed its clear view, in that respect, as to what was wrong or missing in the examination made by CIT(A), a remand was not called for. Therefore, judgment of Tribunal was set aside.

Supported by:CIT v. Aspentech India Pvt Ltd [ITA No.1233/2011] : 2012 TaxPub(DT) 977 (Del-HC) and Goetze (India) Limited v. CIT (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC).

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2007-2008

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