9911796707
TMI Blog2021 (12) TMI 1432X X X X Extracts X X X X X X X X Extracts X X X X ..... so passed by Ld Principal CIT (PCIT). 2. The Ld PCIT noticed that the assessment order passed by the AO originally u/s 143(3) r.w.s 144C of the Act for the year under consideration was challenged by filing appeal before the ITAT. The ITAT restored certain issues to the file of the AO with the direction to examine them afresh. Accordingly, the AO was required to pass a fresh assessment order u/s 143(3) r.w.s 254 of the Act. However, the AO had passed an "Order Giving Effect" (OGE) on 13.11.2017 allowing full relief to the assessee on the following issues, which were actually restored by the Tribunal for fresh examination:- (a) Disallowance u/s 14A of the Act (b) Whether Royalty income is eligible for computing deduction u/s 10A/10AA o ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ection 10A by relying upon the decision of this Hon'ble Court in case of CIT V/s Tata Elxsi when said judgement has been challenged before Apex Court"? 2. "Whether on the facts and in the circumstances of the case, the Tribunal is right in law in setting aside the addition of Rs.16,43,07,085/- treated as royalty income by the assessee while computing the deduction under section 10A/10AA by following the decisions in the case of Wipro Ltd., and Motorola India Electronics Pvt. Ltd. even when the assessing authority rightly held that the same is not derived by the export business of the industrial undertakings and ingredients of sections 10A/10AA are not satisfied to claim such deduction"? 3. "Whether on the facts and in the circumstance ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (3) r.w.s. 254 of the Act. Instead, the AO has passed an OGE and granted relief to the assessee in respect of all the three issues mentioned above without examining them at all. Thus, granting to relief to the assessee without examining the issues as directed by ITAT and also failure to pass a fresh assessment order u/s 143(3) r.w.s 254 of the Act would definitely render the OGE erroneous and prejudicial to the interests of revenue. Hence we do not find any infirmity in the impugned revision order passed by Ld PCIT. 7. However, we make it clear that while giving effect to the revision order passed u/s 263 of the Act by PCIT, the AO is duty bound to follow the binding decision rendered by the Hon'ble jurisdictional Karnataka High Court for ..... X X X X Extracts X X X X X X X X Extracts X X X X
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