2014 (5) TMI 513

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....ssioner of Income Tax (Appeals) dated 5th December, 2007, the assessment year in question is 2004-05. 2] The issue was of levy of penalty under Section 271(1)(c) of the Income Tax Act in respect of short term capital gains of 1.27 crores. They were not offered in the original return but offered in a revised return filed in the course of assessment proceedings. 3] The tribunal was aware of the fact that the Assessee before us had raised an issue that it has been dissolved without winding up and upon merger pursuant to the order of the High Court dated 20th March, 2007. The scheme of amalgamation under Section 391 to 394 of the Indian Companies Act, 1956, which became effective on 31st March, 2007. Therefore and according to the Assesse....

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....d and the additional evidence filed by the Assessee. However, it passed an order of remand because the tribunal thought that the question could not have been answered purely in terms of law. It required a consideration of the documents or the additional evidence. Therefore, it has set aside the order passed by the authorities and remitted the matter back to the Assessing Officer for denovo consideration. Such an order does not raise any substantial question of law. Resultantly, she submits that the appeal be dismissed. 6] We have, with the consent of the learned advocates and with their assistance, perused the memo of this appeal and the orders impugned before us. On the earlier occasion, we had permitted amendment to the memo of appeal ....

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....ntested the levy of penalty on a nonexisting company. We find that this issue has been taken up by the Assessee for the first time before the tribunal. The order of the Court confirming the amalgamation has also been produced before us for the first time. As it goes to the root of the matter involving legal interpretation, we admit the additional grounds and the additional evidence filed by the Assessee. But we find that the lower authority did not have the opportunity to consider the issue. In the circumstances, we deem it fit to set aside the entire matter to the file of the AO, for considering the issue denovo in all aspects, in accordance with the provisions of law. We have not decided any issue and it is open to the assessee to raise c....