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2020 (1) TMI 691 - AT - Income TaxDisallowance u/ 14A r.w.s. 8D - HELD THAT:- As in assessment year 2011-12 we find that the Ld. CIT(Appeals) has given relief to the assessee following the decision of the Tribunal in assessee‟s own case for assessment year 2008-09 by holding that “the disallowance of expenditure u/s.14A read with rule 8D is not justified in view of the fact that the appellant has its own sufficient funds which were invested in the shares and were utilized for incurring the various other expenses and no interest has been paid on these surplus funds available with the appellant.” DR at the very outset submitted that with regard to the order of the Tribunal for assessment year 2008-09 in assessee‟s own case, the Revenue had preferred an appeal before the Hon‟ble Jurisdictional High Court and the Hon‟ble High Court also had given relief to the assessee. That being further aggrieved, the Revenue had preferred an appeal before the Hon‟ble Supreme Court as passed an ex-parte order wherein the findings of the Hon‟ble High Court and the Tribunal was reversed and the issue was decided in favour of the Revenue. That further the said order being ex-parte, the assessee had filed an curative petition before the Hon‟ble Supreme Court and the Hon‟ble Supreme Court had recalled the ex-parte order to be now heard on merits and had directed for listing the said appeal. Thereafter, whether the Hon‟ble Supreme Court had heard the appeal or decided the appeal on merits is not coming out from the facts on record nor the Ld. DR was in a position to state the correct legal scenario. The Ld. DR vehemently contended that technically as on date, the matter stands in favour of the Revenue. However, it has to be ascertained whether after recalling the ex-parte order, the Hon‟ble Supreme Court had heard the appeal on merits or not or has passed any order that has to be considered since it will have the effect on all these appeals. More so, as evident from the aforesaid facts after decision of the Tribunal for assessment year 2008-09, lot of events has taken place and these events and the legal developments have to be ascertained before arriving at any decision. In the interest of justice, we, therefore, set aside the respective orders of the Ld. CIT(Appeals) in respect of all these assessment years and remit the matter back to their respective files for adjudicating the issue after taking into consideration recent legal developments specifically the order passed by the Hon‟ble Supreme Court on merits, if any, and the Ld. CIT(Appeals) shall adjudicate the issue after complying with the principles of natural justice. Reopening of assessment u/s 147 - validity of reason to believe - determination of book profits u/s.115JB - HELD THAT:- There was no new material in front of the Assessing Officer to form “reason to believe‟ that any income has escaped assessment. The power of the Ld. CIT(Appeals) is co-terminus with that of the Assessing Officer and he has made statement on record that there was no new material before the Assessing Officer so to resort to the provisions of section 147/148 of the Act. Even before us, the Ld. DR could not bring any material on record to controvert these facts nor could place before us any case laws in support of the revenue. The binding judicial pronouncements as on record have also been considered and are equally applicable to the facts of the present case. That further, once reassessment proceedings and the consequent order passed is declared void-ab-initio as per law and hence, quashed, the issue of book profits determined u/s.115JB of the Act becomes academic in nature. Therefore, we do not find any infirmity with the findings of the Ld. CIT(Appeals) and the same is hereby upheld. - Decided against revenue
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