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2015 (3) TMI 108 - HC - Income TaxRemitting the matter to higher forum for decision on merits - Remand of matter to the (AO) for reconsideration - whether the matter is to be remitted to the ITAT rather than to the AO? - Held that:- The DRP’s determination in these circumstances, concerning the AY 2010-11, made earlier on 30.10.2013, stood. It is a matter of record that the revenue did not choose to either reopen the assessment in any manner nor call into question the decision of the DRP in terms of Section 253(2A) which enables revenue to approach the ITAT in respect of any of its grievances against the order of the DIT. This provision was supported by Finance Act, 2012 w.e.f. 1.7.2012 - i.e. before the draft assessment order was made in respect of AY 2010-11. In these circumstances, we are of the opinion that the restricted remand to the AO was not justified. At the same time, this Court is not persuaded to the submissions of the revenue that since the assessee considered the entirety of circumstance for the other years in its order dated 28.11.2014 which led to the final assessment order dated 4.12.2014, which is in turn is the subject matter of the assessee’s appeal before the ITAT, the latter course is the most appropriate one. This is because the ITAT’s impugned order in this case followed by the DRP was cryptic in its order and had nothing to say in respect of draft assessment order, initially framed on 28.3.2013. Thus going through circumstance at two stages i.e. when the first draft assessment was made and subsequently under Section 263, the course of action urged by the revenue given that it also did not articulate grievance of the DRP’s order is not appropriate. It would be in the fitness of things that the matter is remitted to the DRP rather than AO which would consider the matter referred to it and after hearing the submissions of the parties deal with them with proper reasoned order, but in accordance with law.
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