2017 (2) TMI 735

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....s. 7,19,653/- by his petition dt. 30-01-2017. When this was taken up, it was noticed that the issue in main appeal is also covered in favour of assessee and accordingly, after hearing both parties, the appeal itself is disposed-off along with Stay Petition. 2. Briefly stated, assessee filed return of income declaring total income of Rs. 3,44,566/-. Assessment u/s. 143(3) of the Act was completed by assessing the income at Rs. 16,17,570/- by making disallowance of Rs. 11,68,000/- u/s. 40(a)(ia), being the lease rentals paid by assessee to M/s. Sundar Mahal, Gudur. Assessee filed an appeal before the CIT(A). Ld.CIT(A) following the decision of the ITAT, deleted the disallowance of the rentals. It was held that the provisions of Section 40(....

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....there is no examination of the fact whether the expenses incurred by the assessee paid or payable, as on the date of Balance Sheet i.e. 31st March of accounting year, therefore, we set aside the orders of the CIT(A) and restore the issue to the file of the Assessing Officer to examine and decide the same in the light of the Special Bench decision in the case of M/s Merly Shipping Transport & others (supra), after providing reasonable opportunity of hearing to the assessee. Thus, the grounds of appeal of the revenue are allowed for statistical purposes". 3. The AO, however, while completing the re-assessment proceedings noted that the Special Bench decision, though in favour of assessee has been put under interim suspension by the Hon&#39....

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....limited to examine facts for applicability of the decision of Special Bench. 6.1. We further find that while deciding the appeal in the case of Janapriya Engineers Syndicate (I.T.T.A. No.352 of 2014 dated 24-06-2014) the Hon'ble Andhra Pradesh High Court has clarified the issue of interim stay granted by it in the case of Merilyn Shipping and Transport Ltd., Vs. ACIT 136 ITD 23 (SB) [16 ITR 1] (SB)(Visakha.)(Trib.) (Supra). The relevant para of the said judgment is as under: "4. We are of the view that until and unless the decision of the Special Bench is upset by this Court, it binds smaller Bench and coordinate Bench of the Tribunal. Under the circumstances, it is not open to the Tribunal, as rightly contended by Mr. Narasimha....