|The Tax Publishers2021 TaxPub(DT) 0927 (Karn-HC) : (2021) 432 ITR 0187
INCOME TAX ACT, 1961
Where the High Court set aside the matter and remitted the same to ITAT for fresh adjudication and in remand proceeding the assessee raised issue of limitation then the ITAT was bound to address that issue and was not justified in holding the aforesaid ground is not subject matter of the order of remand in the light of directions contained in the order passed by High Court.
Appeal (ITAT) - Block assessment under section 158BC - Tribunal not adjudicated the matter with regard to limitation -
Assessee was in liquidation and for relevant block assessment years, viz., 1986 87 to 1996-97 was carrying on business of financial activity in equipment leasing. A search under section 132 was conducted at premises of assessee. Notice was issued to assessee under section 158BC requiring assessee to file return of income. Return of income was filed and AO held that assessee had purchased the assets from M/s P. at a higher value with a view to claim depreciation on the enhanced value as against actual written down value. AO concluded the assessment for the block assessment years and disallowed the excess depreciation claimed by assessee. The Tribunal deleted disallowance of depreciation and decided the issue in favour of the assessee. The revenue filed an appeal before High Court against the order of the tribunal during he pendency of the appeal before High Court, the Reserve Bank of India filed a company petition before High Court to wind up the assessee. High Court by an Order, dated 20-7-2005 directed the company to be wound up and appointed the Official Liquidator to take charge of the assets of the company. High Court set aside the order of the Tribunal and remitted the matter to the tribunal for fresh adjudication considering the amended provision of section 158BB of the Act. The Tribunal after hearing the parties, passed an order and did not adjudicate the ground raised by the assessee with regard to the limitation and held that the aforesaid ground is not subject matter of the order of remand in the light of directions contained in the order passed by High Court. Held: The finding of the Tribunal that the issue with regard to limitation cannot be adjudicated as the same would be beyond the purview of the order of remand cannot but be said to be perverse. Since Tribunal had not adjudicated the issue with regard to limitation, order passed by the Tribunal insofar as it pertained to finding with regard to the issue of limitation was quashed and the Tribunal was directed to decide the issue of limitation with regard to the order of assessment passed by AO for the block assessment years 1986-86 to 1996-97.
FAVOUR : Matter remanded.
IN THE KARNATAKA HIGH COURT
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