The Pune bench of the Income Tax Appellate Tribunal (ITAT) held that relief Granted by deleting one Addition doesn’t mean to deny all other reliefs.
The appellant is a Cooperative Society engaged in the business of running of sugarcane factory. The Return of Income for the assessment year 2009-10 was filed on 29.09.2009 and the same was revised on 08.06.2010 at Rs.Nil income after claiming set off of the brought forward losses.
Against the said return of income, the assessment was completed by the Commissioner of Income Tax, vide order dated 16.12.2011 passed under Section 143(3) of the Income Tax Act, 1961 at a total income of Rs.115,62,56,550/-
Being aggrieved by the above disallowances, an appeal was filed before the NFAC, who vide impugned order deleted the addition on account of excess and unreasonable sugarcane purchase price of Rs.114,74,95,731/. Being aggrieved, the appellant appealed before the tribunal.
After hearing the DR and pursuing the material on record, the tribunal was against the approach adopted by the NFAC, merely because relief was granted in respect of one item of additions, does not mean justice can be denied in respect of balance additions/grounds of appeal raised.
The bench consisting of Inturi Rama Rao and Viswanethra Ravi held that the approach adopted by the National Faceless Assessment Center (NFAC) was illegal and unreasonable and cannot be sustained in the eyes of law. Therefore, the order of the NFAC is set-aside for de novo adjudication of the issues in appeal afresh after affording a reasonable opportunity of being heard to the assessee.
In the result, the appeal filed by the assessee stands partly allowed.
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