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2021 (10) TMI 230 - Income Tax
Reopening of assessment u/s 147 - Disallowance u/s 14A r.w.r. 8D - petition filed by the respondent-assessee under rule 27 of the Income Tax Appellate Tribunal Rules, 1963, wherein the respondent-assessee has raised a grievance against reopening of the assessment - CIT-A deleted by holding that the AO cannot go beyond the provisions of Section 44 and Schedule 1 of the Act - Assessee is a public sector undertaking engaged mainly in the business of providing life insurance - HELD THAT:- In a situation in which the respondent to an appeal has not filed a cross-appeal or a cross-objection, but has simply moved the petition under rule 27, one of the limitations of invoking rule 27 is that the appellant cannot be worse off vis-à-vis the position he was in when he presented the present appeal.
In the present case, if entire reassessment proceedings are to be quashed- as is sought by way of a petition under rule 27, the Assessing Officer will be in a worse position vis-à-vis the position if he was not to come in appeal, in the sense that even admitted liability in respect of the incorrect foreign tax credits of ₹ 7.57 crores will stand nullified. What the respondent-assessee can at best seek is the position as on at the outcome of the first appellate order, and that is what he gets anyway when the appeal of the Assessing Officer is dismissed.
The relief being sought by this petition rule 27 is thus much more than what is permissible in law. Be that as it may, the appeal of the Assessing Officer having been dismissed on merits, and, thus, the net position as at the time of the outcome of the first appeal having been allowed to be sustained, the present petition under rule 27 becomes wholly academic and infructuous, and it does not therefore call for any adjudication on merits. We, therefore, dismiss the petition as infructuous.