2011 (9) TMI 1072

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....for assessment year 2007-08, till the disposal of an appeal pending before the Tribunal. 2. On 30 October 2007, the Petitioner filed a return of income for assessment year 2007-08 declaring a Nil total income, after set off of brought forward business losses/unabsorbed depreciation in the amount of Rs. 7,71,27,33,787/-. The Assessing Officer passed an assessment order on 31 December 2009 under Section 143 (3) of the Income Tax Act, 1961 after making various additions and disallowances. On 4 January 2011 the CIT (Appeals) passed an order partly allowing the appeal. Thereafter on 2 May 2011 the First Respondent passed an order of rectification determining the total income of the Petitioner at Rs. 1626,73,34,850/- and a demand of Rs. 840,61....

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....s made by an assessee for transmission of electricity through a transmission network were subject to deduction of tax at source under Section 194J and also under Section 194C. The Jaipur Bench of the Tribunal by its decision delivered on 30 April 2009 held that there was no liability to deduct tax at source on the payment of transmission/wheeling charges under section 194J or for that matter, under Section 194C. The Tribunal adverted to the submission made by the Petitioner. However, the only observation that is found in the order of the Tribunal on this aspect is as follows. "After considering the rival submissions and perusing the relevant material on record, at this preliminary stage we find that prima facie there is some substance in....

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....ur Vidyut Vitran Nigam Ltd. (Supra) has not considered the submission while evaluating prima facie the merits of the application before it. All that the Tribunal observed is that prima facie there is some substance in the arguments advanced by both the sides. The Petitioner, it must be noted, had sought to urge before the Tribunal that the issue as to whether tax is liable to be deducted at source under sections 194C and 194J on payments made for transmission and wheeling charges has specifically been determined by a Co-ordinate Bench at Jaipur. That submission deserved application of mind, which we find absent in the order of the Tribunal. Application of mind must in a judicial order emerge from the reasons adduced and not merely from reco....