Thursday, May 1, 2014

[aaykarbhavan] Technical infirmity, is of no practical significance if additions on merits cannot be sustained. [2 Attachments]




Hon'ble Agra ITAT has in its order of A.C.I.T., Circle 4(1), Agra vs. Dakshinanchal Vidyut Vitran
Nigam Limited has held that Technical infirmity, is of no practical significance if additions on merits cannot be sustained by observing as under:-

"As evident from a plain look at the ground of appeal, the actual grievance of
the appellant is not on merits but on the legal issue regarding limitations on the
powers of the CIT(A) on the ground that post 1st June 2001, it is no longer open to
the Commissioners (Appeals) to remit the matter to the file of the Assessing
Officer, whereas in the instant case, learned CIT(A) has done precisely that. While
appellant is right in principle but that aspect of the matter is no longer of any
practical significance because neither the assessee has raised any grievances on
merits nor such a grievance as is raised before us, even if upheld, will affect the
powers of this Tribunal in remitting the matter to the file of the Assessing Officer.
Revenue thus derives no practical advantage from raising this issue before us.

In view of the above discussions, as also bearing in mind entirety of the
case, we see no reasons to interfere in the matter. In any event, even on merits, the
issue regarding merits of impugned additions is covered, in favour of the assessee,
by an order of this bench. The technical infirmity, as pointed out in the grounds of
appeal, is of no practical significance so far as impugned additions are concerned.
Therefore, both the appeals filed by the Revenue are found to have no merit and
are thus liable to fail."

Copy of the order enclosed

Regards
Prarthana Jalan


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