Subscription   Feedback   New User   Login      
Tax Management India .com
TMI - Tax Management India. Com
Articles Highlights TMI Notes SMS News Newsletters Calendar Imp. Links Database Experts Contact us More....
Extracts
Home List
← Previous Next →

M/s Dell International Services India Pvt Ltd (Formerly Known As Dell Computers (I) Pvt. Ltd) Versus The Asst Commissioner Of Income Tax

2016 (5) TMI 114 - KARNATAKA HIGH COURT

Remand orders - provision made for warranty - Held that:- It is an admitted fact that on the appeal filed by the revenue challenging the order passed by the Tribunal giving relief to the assessee as regards the provision made for warranty, this Court placing reliance on the Judgment of the Apex Court in Rotork Controls’ case (2009 (5) TMI 16 - SUPREME COURT OF INDIA ) remanded the matter to the Tribunal for disposal in accordance with law. The jurisdiction of the Tribunal being a last fact findi .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

odology adopted by the assessee is on a scientific and reasonable basis.

We observe that no proper reasoning has been given by the Tribunal for exercising the power of remand. The directions issued by this Court while remanding the matter to the Tribunal is not considered by the Tribunal in the true spirit. It was the obligation cast on the Tribunal to examine the case of the Assessee in the light of the Judgment of the Apex Court in Rotork Controls’ case (supra) and to come to a deci .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

angalore dated 13.2.2015 in ITA Nos. 362 & 363/BANG/2007 relating to the assessment years 2002-03 and 2003-04. 2. Brief facts of the case are that the assessee/company which is engaged in the marketing and distribution of software systems and storage devices, computer consultancy and solutions, had filed its return of income for the relevant assessment years. During the assessment proceedings under Section 143(3) of the income tax Act, 1961 (the Act for short), the Assessing Officer observed .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

26.09.2012 remanded the matter back to the Tribunal. The Judgment of this Court reads thus: "The Supreme court in the case of Rotork Controls India P. Ltd. Vs Commissioner of Income-Tax reported [2009] 314 ITR 62 (SC) has held in para-10 that the provision for warranty could be made is permissible if the requirements stated in para-10 are fulfilled. In that view of the matter, the appeals are allowed and the common order dated 16.11.2007 passed in ITA No.363/BNG/2007 and ITA No.362/BNG/2007 .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

on account of such warranty. 4. Being aggrieved by the said order passed by the Tribunal the assessee is before this Court raising the following substantial questions of law: "1. Whether on facts and circumstances of the case, the Appellate Tribunal is correct in remanding the matter to the Assessing Officer for verifying whether the Appellant s provision for warranty is based on the past history or actual expenditure incurred by the Appellant on account of such warranty whereas the Honorab .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

remand ordered by the Hon ble High Court. 4. Whether on the facts and circumstances of the case, the Appellate Tribunal was correct in remanding the matter involving a legal issue to the Assessing Officer. 5. Whether the Appellate Tribunal has erred in remanding the matter to the Assessing Officer though all the evidences to demonstrate the principles were available on record. 6. Whether the Appellate Tribunal is justified in remanding back the matter to the Assessing Officer for verification, .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

r of Incometax, Chennai reported in ((2009) 180 TAXMAN 422 (SC) has remanded the matter to the Tribunal for disposal in accordance with law. The Tribunal after examining the case of the assessee in the light of the Judgment of the Apex Court in Rotark Controls case (supra) has positively held that the methodology adopted by the assessee for estimating the warranty are based on the actual expenditure incurred by the assessee on such products in the earlier assessment years on account of warranty .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

ion, being the last fact finding authority. The order passed by the Tribunal goes beyond the scope of remand made by this Court which is untenable and calls for interference by this Court. 7. Per contra, learned counsel appearing for the revenue Sri Aravind would justify the order passed by the Tribunal. It is contended that the order of remand made by the Tribunal is not an open remand and it is only for the limited purpose to verify the figures adopted by the assessee to explain the estimate o .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

t the assessee. 8. We have given our anxious consideration to the submissions made by the parties. It is an admitted fact that on the appeal filed by the revenue challenging the order passed by the Tribunal giving relief to the assessee as regards the provision made for warranty, this Court placing reliance on the Judgment of the Apex Court in Rotork Controls case (supra) remanded the matter to the 8 Tribunal for disposal in accordance with law. The jurisdiction of the Tribunal being a last fact .....

X X X X X X X

Extract - Part text only
Click here to Access Full Contents

X X X X X X X

 

 

 

 

 

what is new what is new
  ↓     bird's eye view     ↓  


|| Home || Acts and Rules || Notifications || Circulars || Schedules || Tariff || Forms || Case Laws || Manuals ||

|| About us || Contact us || Disclaimer || Terms of Use || Privacy Policy || TMI Database || Members || Site Map ||

© Taxmanagementindia.com [A unit of MS Knowledge Processing Pvt. Ltd.] All rights reserved.

Go to Mobile Version