TaxTMI 
TaxTMI 
2019 (12) TMI 351
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....we find that in this case, the ld. CIT(A) has called for a remand report from the Assessing Officer on the issue before. The Assessing Officer in his remand report dt. 26/05/2015, has stated as follows:- "The detail of documents filed by the assessee company are duly perused. From the record, it is found that the all applicants who have subscribed the fresh share capital issued by the assessee during the relevant year under consideration are assessed to income tax and payments were made through banking channels by way issuance of cheques. It is further found that in the original assessment proceedings the assessee company has furnished the complete details of such share holders like complete name, address, PAN, Income Tax details .and ba....
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....has finally concluded with full application of his mind without any iota of doubt or reservation that the applicant investor companies making the total investment of Rs. 17,63,00,000/- to the equity shares of the appellant company and the receipt of the said sum by the appellant company have fully substantiated and established the identity & creditworthiness of the share applicant companies and the genuineness of all the transactions made by them with the assessee company without any reservation. Therefore, considering the totality of the facts and circumstances of the case, I find substance in the argument of the AR that the appellant has made its case that the identity of the share applicants are established beyond doubt and on enquiries ....
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..... In view of the above, I have no hesitation to hold that the impugned addition made by the AO by invoking the provisions of s. 68 is not justified in the circumstances and accordingly, direct him to delete such addition of Rs. 17,63,00,000/- made on this account. Thus, effective ground no. 5 of the appeal is allowed." 4. Under these circumstances, the issue that has to be considered is whether the ITO, Ward-8(1), Kolkata, who is the appellant in this case, has the locus standi to file the appeal against his own findings in the remand report. We find that the Hon'ble Madras High Court in the case of Smt. B. Jayalakshmi v. Assistant Commissioner of Income-tax, Salary Circle-II, Chennai [2018] 96 taxmann.com 486 (Madras), held as follow....
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.... the CIT (A) based on such remand report. Thus, if such is the situation, the appeal itself would have been incompetent. Hence, this question, which touches upon the jurisdiction of the Tribunal, has not been considered by the Tribunal, we are inclined to review the judgment and remand the matter to the Tribunal for fresh consideration. 24. In the result, the Review Petitions are allowed and the judgment dated 30.09.2013, in Tax Case (Appeal) Nos.819 to 821 of 2010 is reviewed and recalled and the appeals stands disposed of, by remanding the matter to the Tribunal to decide the question of its jurisdiction to entertain the appeals filed by the Revenue against the orders of the CIT (A). In the event, the Tribunal decides the question in f....
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....e the name boards of some of the source companies displayed at the addresses. He also stated that he could see books of accounts of some of the respective sources companies on demand to the people present there, It is revealed to the inspector that in some cases, the source companies has taken table space agreements. In some cases they are occupying on rental basis. Submission of the assessee was considered, The report submitted by the inspector or along with extract of supporting documents was also considered and placed on record. No material (is) found in the assessment record which indicates that effort has been given to prove the existence and creditworthiness as submitted by the assessee during this remand proceedings. All the papers, ....
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....ordingly assessee's appeal on ground no 3 is allowed." 9. On these facts the issue is whether the Revenue could at all file an appeal before the Tribunal. The Hon'ble Madras High Court in the case of Smt.B. Jayalakshmi vs ACIT (supra held as follows :- "Section 246 of the Income-tax Act, 1961 - Commissioner (Appeals) - Appealable orders (Remand report) - Assessment years 1995-96 to 1997-98 - For relevant year, assessment order was passed under section 143(1) - Subsequently, Assessing Officer reopened assessment under section 147 and made addition by treating agricultural income of assessee as non- agricultural - Commissioner (Appeals) called for remand report - Assessing Officer submitted remand report after enquiry and sta....