TaxTMI 
TaxTMI 
TaxTMI 
2016 (6) TMI 535
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....d of tax plus interest on this issue of Rs. 3,76,74,095/- . 3. The assessee carried the matter in appeal before the Commissioner(Appeals) who confirmed this addition made by the Assessing Officer by his order dated 7.12.2001. The assessee carried the matter in further appeal before the Tribunal. 4. It may be noted that substantive addition was made in the assessment year 1996-1997. Simultaneously, the same income was also taxed on protective basis in the assessment year 1997-1998. 5. After the Commissioner (Appeals) dismissed the petitioner's appeal, confirming the addition of royalty income but before the appeal of the petitioner was decided by the Tribunal, on 21.4.2002, the petitioner wrote to the Assistant Commissioner of Income tax and stated as under: "This has reference to CIT (A)'s appellate order dated 13-02-02 and his order dated 12-03-02 u/s 154. We request you to kindly give effect to the said orders. While giving effect to the said orders, we also request you to kindly reduce the assessed income by Rs. 4,94,20,595- being the royalty income included in the assessed income, which has been taxed in A.Y. 1996-97. kindly refer to note no. 1 in the assessment orde....
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....ion, then no addition is required on protective basis in assessment year 1997-98. We, therefore, reverse the finding of the Commr. of Income Tax (Appeals) and restore this issue to the Assessing Officer for examination afresh in accordance with after providing the reasonable opportunity of being heard to the assessee. In the result, this ground of the assessee is allowed for statistical purposes." 8. Pursuant to this order of the Tribunal, the Assistant Commissioner of Income-tax, Rajkot, passed a consequential order giving effect to the order of the Tribunal on 3.8.2005 which reads as under : "Order giving effect to the ITAT's Order In view of the orders No. ITA no.544, 691, 836 and 321/RJT/2002 dated 30.5.2005 of the Hon'ble ITAT Rajkot, the total income of the assessee is recomputed as under : Total income after giving effect to the CIT(A)-IV Rajkot Order No. CIT(A)IV/014/01-02 dtd 7.12.2001 (Appeal effect order dt 7.1.2002) Rs.11,82,66,340 Less - Relief allowed by ITAT Addition of accrued Royalty Income made by Assessing Officer remanded back by ITAT Rs.4,94,20,595 Revised total income Rs.6,88,45,745 Modified to the above extent. Issue revised demand notice an....
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....partment proceeded and also granted relief to the assessee for the assessment year 1997-1998 and 1998-1999 and adjusted the refunds against the tax demand for assessment year 1996-1997. This would be clear from the impugned order dated 7.7.2015 passed by the Assistant Commissioner in which while rejecting the petitioner's request for refund of sum of Rs. 3,76,74,095/- with interest, he conveyed as under : "The claim made by you in this regard has been verified. On verification of records it is seen that the claim of refund is based on taxability of royalty receipt of Rs. 4,94,20,595/- . On Perusal of records it is noticed that while finalizing the Assessment for A.Y. 1997-98 it was observed by the A0 that the receipt of royalty of Rs. 4,94,20,595/- from sister concern M/s Ajanta Electronics Pvt. Ltd. Pertaining to A.Y. 1996-97 was also considered for taxation in the A.Y. 1997-98. Therefore the said receipt was taxed on Protective basis in the A.Y.1997-98. And assessment for A.Y. 1996-97 was reopened to tax the same on substantive basis An order u/s 143(3) r.w.s 147 of the IT Act was passed for A.Y 97-98 on 06.07.2001 determining total income Rs. 12,33,27,737/- . The amount of ....
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.... income of the assessee by deleting such sum of Rs. 4,94,20,595/- from the total income of the assessee. Firstly, the Tribunal had not allowed the appeal of the petitioner on merits, had not granted any relief on the question of taxability of the said income but had merely accepted the assessee's stand that substantive addition having been made in the year 1996-1997, there would be no further requirement of maintaining protective assessment for the assessment year 1997-1998. It is true that the Assistant Commissioner, Rajkot in his order dated 3.8.2005 made a complete mess of the things by treating the order of the Tribunal as one of giving total relief to the petitioner in terms of taxability of the income itself. It was a total non application of mind on his part. Nevertheless, the petitioner cannot benefit out of the same. Firstly, long before the Tribunal passed the said order dated 30.5.2005, the petitioner had already approached the department and conveyed that the protective assessment for the year 1997-1998 be deleted. This would mean that the assessee would have loss in the said year which would also be carried forward in the assessment year 1998-1999. He conveyed that....