Case Law Details
CA Sandeep Kanoi
Gujarat Alkalies and Chemicals Ltd. vs ACIT (Gujrat High Court)
Brief Facts of the Case- A grievance, which is voiced by Shri J.P. Shah, learned Counsel appearing on behalf of the appellant, is that while remanding the matter to the Assessing Officer with respect to disallowance of Rs.1,89,17,094/- towards the lease rent paid, the tribunal has directed the Assessing Officer to take a fresh decision in light of the decision of the Special Bench of the tribunal rendered in the case of IndusInd Bank Ltd. It is submitted that as such the Assessing Officer is required to take a fresh decision in accordance with law and considering the decision on the issue prevailing at the time of deciding the matter.
It is submitted that therefore the remand should not be restricted only to take a fresh decision in light of the decision of the Special Bench of the tribunal in the case of IndusInd Bank Ltd. only and, therefore, it is requested to make a suitable observation/clarification that, on remand, the Assessing Officer to take a fresh decision in accordance with law and the case law at the time when he decides the matter.
Held by High Court
The dispute is with respect to the Assessment Year 2004-05. In an appeal before the Income Tax Appellate Tribunal with respect to the disallowance of Rs.1,89.17.094/- towards the lease rent paid, the tribunal has remanded the matter to the Assessing Officer to take a fresh decision in light of the decision of the Special Bench of the tribunal rendered in the case of IndusInd Bank Ltd.. When the tribunal has remanded the matter to the Assessing Officer for a fresh decision, we fail to appreciate why the tribunal should restrict the decision by the Assessing Officer considering the decision of the Special Bench of the tribunal rendered in the case of IndusInd Bank Ltd only. There may be other decisions either in favor of the assessee or even in favour of the revenue, which may be required to be considered by the Assessing Officer.
Under the circumstances, it is clarified that, on remand, the Assessing Officer to take a fresh decision in accordance with law and the case law at the time he decides the matter, inclusive of the decision of the Special Bench of the tribunal rendered in the case of IndusInd Bank Ltd.. In short, the remand is not to take a fresh decision in light of the decision of the Special Bench of the tribunal in the case of IndusInd Bank Ltd. only and the remand is to take a fresh decision by the Assessing Officer in accordance with law and on merits.
