Tribunal upholds CIT(A) relief in assessment case, dismissing AO appeal, citing lack of contradictory precedents

The Tribunal upheld the relief granted by the CIT(A) in a case concerning the assessment under section 143(3) for the year 2012-13. The appeal by the Assessing Officer challenging the deletion of additions totaling Rs. 1,46,86,476 and disallowance of Rs. 5,52,333 was dismissed. The Tribunal found in favor of the assessee, citing previous decisions and lack of contradictory judicial precedents presented by the Departmental Representative. Consequently, the relief granted by the CIT(A) was confirmed, and both the appeal and cross-objection were dismissed by the Tribunal.

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Issues:
Challenge to CIT(A)'s order on assessment under section 143(3) for the assessment year 2012-13.
1. Deletion of addition on account of guest fees, hire of rooms, and hire charges.
2. Deletion of disallowance under section 57(iii) of the Act.

Analysis:
1. The Assessing Officer appealed against the CIT(A)'s order regarding the assessment under section 143(3) for the year 2012-13. The appellant raised two grievances concerning the deletion of additions totaling to Rs. 1,46,86,476 on account of guest fees, hire of rooms, and hire charges, and the deletion of a disallowance of Rs. 5,52,333 under section 57(iii) of the Act.

2. During the hearing, the assessee's counsel argued that the issues raised were in favor of the assessee based on previous decisions of the Tribunal in the assessee's own case. The counsel referred to several judicial precedents from the Tribunal's co-ordinate bench, demonstrating that the issues were settled in favor of the assessee in those cases.

3. The Departmental Representative supported the Assessing Officer's order but failed to present any binding judicial precedent contradicting the decisions relied upon by the assessee's counsel. Consequently, the Tribunal declined to interfere in the matter, upholding the relief granted by the CIT(A) based on the decisions of the co-ordinate bench in the assessee's own case.

4. As a result, the appeal was dismissed, and the relief granted by the CIT(A) was confirmed and approved. The Cross-Objection filed by the assessee was not pursued and was dismissed for want of prosecution. Therefore, both the appeal and cross-objection were ultimately dismissed by the Tribunal.

5. The judgment was pronounced in open court on 1st April 2019 by Pramod Kumar, Vice President, and Ms. Madhumita Roy, JM.

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