Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (11) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (11) TMI 85 - AT - Income TaxAddition on account of repurchase of Foreign Currency Convertible Bonds (FCCB) - allocation of machinery under the head of depreciation @ 15% and 80% are to be allocated on pro data basis depending upon the WDV of the said block - whether CIT(A)-3, erred in law & on facts in not directing the assessing officer, not to allocate the amount of difference of discount on buying back of FCCB and reducing a sum from the cost of assets, while computing depreciation in the absence of any such findings in the appellate order? - HELD THAT:- As per RYAM SUGAR COMPANY LIMITED [1974 (3) TMI 10 - CALCUTTA HIGH COURT]AO has no power to go beyond the direction of the competent authority while passing order giving effect. So far as the merit of the case is concerned the Ld. counsel has pointed out that the issue involved is covered in favour of the assessee by the order of the Hon'ble Supreme Court in the case of Tata Iron & Steel Ltd. [1997 (12) TMI 5 - SUPREME COURT] - However, we notice that the Ld. CIT(A) has passed the impugned order without taking into consideration the cases relied upon by the Ld. counsel. As alleged by the Ld. counsel the issue involved is also covered in favour of the assessee which has not been looked into by the authorities below. Under these circumstances, we deem it appropriate to restore the issue to the AO for passing order giving effect afresh to the appellate order passed by the Ld. CIT(A) in the first round of appeal. The Ld. DR has no objection in case the appeal is send back to the AO for fresh consideration. Appeal of the assessee is allowed for statistical purposes.
|