2018 (11) TMI 1255

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....e Appellant : Mr. Vishal Mohan, Advocate, with M/s Sushant Kaprate, Aditya Sood and Praveen Sharma, Advocates For the Respondent : Mr. Vinay Kuthiala, Sr. Advocate with Mr. Diwan Singh Negi, Advocate ORDER SANJAY KAROL, J (ORAL) The present appeal stands admitted on the following substantial questions of law:- (a) Whether the learned Income Tax Appellate Tribunal is right in l....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....proper prospective? 2. Vide order dated 14.12.2010 (Annexure A-1), the Deputy Commissioner of Income Tax, Circle, Shimla, H.P., found the assessee to have close connection with another concern i.e. M/s Stoneage Industrial Diamond Product, also partnership concern of Sh.Devi Prasad Gupta, sole proprietor of the assessee M/s Shree Tools, thus, by applying the principle of Section 80IA(10) of the ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....t the matter needs to be remanded back, for we find the order passed by the Assessing Officer suffering from perversity, both legally and factually. 6. It is not in dispute that the reason assigned by the Assessing Officer in applying the provisions of Section 80IA (10) of the Act, is based only on an admission made by the assessee in relation to the two preceding assessment years i.e. 2006-07 ....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....carried out in the preceding year. The approach adopted by the authorities below is erroneous and perverse. 8. Thus, we quash and set aside the orders dated 14.12.2010 (Annexure A-1), passed by the Deputy Commissioner of Income Tax, Circle, Shimla, H.P.; dated 22.01.2013, passed by the Commissioner of Income Tax (Appeals), Shimla, H.P., in Appeal No.IT/442/2010-11/SML (Annexure A-2); and dated ....