INCOME TAX ACT, 1961

Section 250(6)

Appeal to CIT(A) - Non speaking order of Commissioner (Appeals) - CIT(A) decided appeal on basis of remand report of AO -

Assessee filed return of income for assessment year 2009-10 and for assessment year 2010-11 declaring losses. Assessment under section 143(3) was completed for assessment year 2009-10 and 2010-11 after making certain additions/disallowances. CIT(A) allowed the appeal of assessee for both the assessment years. Revenue submitted that CIT(A) had not passed a speaking order and that too without going into merit of the issues, whereas assessee relied on the order of CIT(A) and submitted that in remand report proceedings, AO accepted the claim of the assessee and did not propose any additions/disallowance. Held: It was evident that AO in remand report proceedings has accepted the claim of the assessee regarding the additions and disallowance made in the assessment order. Nothing contrary was produced which could show that CIT(A) had allowed the relief to the assessee in any unreasonable manner. Revenue was not able to explain as why the appeal was filed when AO himself had accepted the claim of assessee in the remand report, which was endorsed by Supervisory Officer also. CIT(A) had decided the issue on the basis of the remand report of AO duly forwarded by the Supervisory Officer. The stand taken by AO and Supervisory Officer in the remand proceeding was considered to be the stand of Revenue unless anything mala fide was not found in the action of AO in remand report. Since CIT(A) had decided the issue in view of the remand report of AO, therefore appeal of Revenue was dismissed.

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

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