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2017 (3) TMI 737 - HC - Income TaxValidity of recording of observations by the ITAT while remanding the matter to the A.O. for re-adjudication of the issue - Assessment of income under the correct hand - joint development agreement (JDA) - one partner is offering rental income as taxable in its hand - Held that:- It is trite that the Tribunal has discretionary power to remand the matter to the A.O. for fresh consideration. However, any observation made by the Tribunal while remanding the matter for examination of certain issues would prejudice the rights of the Assessee resulting in violation of the principles of natural justice besides influencing the A.O. while re-examining the matter. It is for the A.O. to apply his mind and come to a conclusion, after proper examination of the issue involved. Hence, we are of the considered opinion that the observations made by the Tribunal at paragraph of the Judgment on merits of the case deserves to be expunged and accordingly they are expunged. Hence, the substantial question of law formulated above, is answered in favour of the Assessee and against the revenue. The matter is remanded to A.O. to reconsider the same afresh.
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