TMI Blog2016 (5) TMI 114X X X X Extracts X X X X X X X X Extracts X X X X ..... nts placed by the assessee in support of its claim. It is settled law that remand is not a power to be exercised in a routine manner and should be used fairingly as an exception only when the facts warranted such course of action. When the materials are available on record, the Tribunal ought to have arrived at a conclusion rather than further remanding the matter back to the Assessing Officer that too, after giving a positive finding that the methodology 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 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nal in the case of CIT vs Wipro GE Medical Systems (80 TTJ 455). Being aggrieved, revenue had preferred the appeals before this Court in ITA Nos.448/2008 c/w ITA 449 and 1039/2008. This Court by order dated 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 and the order dated 06.06.2008 passed in I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... igh 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, even though it was satisfied that the provision for warranty was created on scientific and reasonable basis . 5. Heard the learned counsel Sri K R Vasudevan for the appellant and Sri K V Aravind, learned counsel appearing for the revenue. 6. Learned counsel ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld 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 of provision for warranty during the relevant assessment years, whether is actually expended by the assessee on account of such warranty or not. It is also emphasized that the Tribunal was compelled to make this remand order in view of certain documents filed by the assessee in support of its claim relating to the assessment years 2003-04, 2006-07 and 2010-2011. Accordingly, he seeks to confirm the order passed by the Tribunal and to answer the questions of law in favour of the revenue and against the asse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... But, remanding the matter to the Assessing Officer is in disregard to the Judgment of this Court and as such we are of the opinion that the order passed by the Tribunal is unsustainable. 10. Accordingly, we set aside the Order passed by the Tribunal and remand the matter to the Tribunal to consider the case of the Assessee in the light of the directions issued by this Court in ITA No.448/2008 and connected matters dated 26.9.2012 and to decide the matter, applying the principles of law laid down by the Apex Court in Rotork Controls case (supra). 11. For the foregoing reasons, we answer the questions of law raised, in favour of the Assessee and against the Revenue. 12. In the result, the appeal is allowed. The impugned order of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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