| Question And Answer | |
|---|---|
| Subject: | Additions on the ground that Revenue has filed an appeal before the HC |
| Category: | Income-Tax |
| Querist: | Prakash Kulkarni |
| Answered by: | Advocate C.B.Thakar, Advocate Neelam Jadhav |
| Tags: | appeal, binding nature, Order of Tribunal |
| Date: | September 13, 2022 |
Assessee is engaged in the business of Real estate and claimed the deduction U/Sec. 80IB(10) on the housing projects . AO has disallowed the claim on the ground that assessee has violated the various conditions. CIT A has confirmed the disallowance. On further appeal, Hon’ble ITAT has partly allowed the appeal with certain directions.
AO completed the set aside assessment and again disallowed the claim of the assessee on the ground that Department has filed an appeal against the order of ITAT before HC and same is pending and accordingly assessed the same income again.
Whether action of the AO is justified in Law.
The action of the AO is not in accordance with law . In K.N.Agarwal v.CIT( 1991 ) 189 ITR 769( All)(HC) , ITO v .Siemens India Ltd (1983) 156 ITR 11 ( Bom)( HC), Bank of Baroda v. H.C .Srivastava ( 2002) 256 ITR 385 ( Bom)(HC) , Rajendra Mills Ltd v Jt CIT (1971) 28 STC 483 ( Mad)(HC) , Senthil Raj Metal v. GTO ( 1990) 79 STC 38 ( Mad)(HC) the Courts have held that the order of the Tribunal and High Court are binding on the Assessing Officer . He has to follow the direction of the Tribunal . In Maj. Gen (Retd ) Karnarjit Singh Gill L/H of Smt Narinder Kaur Gill ( Decd ) v.ACIT ( 2006) 101 TTJ ( Amritsar )( Trib ) the Tribunal has imposed cost on Assessing Officer for failure to follow the order higher authorities . Not following the judgement of the Binding nature of Judgement may lead to contempt proceedings . UOI v. Kamalakhshi Finance Corporation Ltd AIR 1992 SCC 711 (712)). It may be desirable for the assessee to file an appeal against the order giving effect to the Order of the Tribunal .