Lennart Strandberg, Bangalore v. The ACIT.,Circle-6,, Baroda

ITA 1451/AHD/2009 | 2004-2005
Pronouncement Date: 24-02-2011 | Result: Partly Allowed

Appeal Details

RSA Number 145120514 RSA 2009
Assessee PAN AWNPS3960Q
Bench Ahmedabad
Appeal Number ITA 1451/AHD/2009
Duration Of Justice 1 year(s) 9 month(s) 17 day(s)
Appellant Lennart Strandberg, Bangalore
Respondent The ACIT.,Circle-6,, Baroda
Appeal Type Income Tax Appeal
Pronouncement Date 24-02-2011
Appeal Filed By Assessee
Order Result Partly Allowed
Bench Allotted B
Tribunal Order Date 24-02-2011
Date Of Final Hearing 24-02-2011
Next Hearing Date 24-02-2011
Assessment Year 2004-2005
Appeal Filed On 07-05-2009
Judgment Text
IN THE INCOME TAX APPELLATE TRIBUNAL AHMEDABAD BENCH 'B' BEFORE SHRI BHAVNESH SAINI JM & SHRI A N PAHUJA ACCOUNTANT MEMBER ITA NO.1451/AHD/2009 (ASSESSMENT YEAR:-2004-05) LENNART STRANDBERG C/O ABB LIMITED KHANJI BHAVAN II FLOOR EAST WING RACE COURSE ROAD BANGALORE-560 001 V/S ASSISTANT COMMISSIONER OF INCOME-TAX CIRCLE-6 BARODA PAN: AWNPS 3960 Q [APPELLANT] [RESPONDENT] APPELLANT BY :- NONE(WRITTEN SUBMISSIONS) RESPONDENT BY:- SHRI R K DHANESTA SR. DR O R D E R A N PAHUJA: THIS APPEAL BY THE ASSESSEE AGAINST AN ORDER DATED 30- 1-2009 OF THE LD. CIT(APPEALS)-XXI AHMEDABAD FOR THE ASSESSMENT YEAR (AY) 2004-05 RAISES THE FOLLOWING GROUNDS:- 1. THE ORDER PASSED BY THE LEARNED CIT (A) IS BAD IN L AW. 2. THE LEARNED CIT (A) ERRED IN CONFIRMING THE INTE RPRETATION OF THE PROVISION OF SECTION 195A THEREBY ERRONEOUSLY CONFI RMING THE INCOME OF RS.712 346/- INSTEAD OF RS.669 660/- AS O FFERED BY THE APPELLANT AFTER GROSSING UP. FURTHER BY DOING SO T HE LEARNED CIT(A) HAS GROSSED UP ENTIRE INCOME AT THE RATE OF 33.66% AND NOT ALLOWING RELIEF FOR INITIAL BASIC EXEMPTIONS LOWER RATE OF INCOME TAX FOR DIFFERENT SLABS OF INCOME ETC. 3. THE LEARNED CIT (A) ERRED IN CONFIRMING THE PERQ UISITES AS PER FORM 12BA WITH RESPECT TO SALARY FROM ABB INTERNATI ONAL HOLDINGS LIMITED AT RS.272 295/- INSTEAD OF RS.145 753/- AS THE AMOUNT OF RS.272 295/- INCLUDES THE PERQUISITES OF RS.126 542 /-ALREADY CONSIDERED IN SALARY FROM ABB LIMITED. YOUR APPELLANT RESERVES ITS RIGHT TO ADD ALTER AM END AND WITHDRAW ANY OF THE ABOVE GROUND OF APPEAL. 2. FACTS IN BRIEF AS PER RELEVANT ORDERS ARE THAT RETURN DECLARING INCOME OF RS.25 51 330/- FILED ON 27-10-2004 BY THE ASSESSEE A RESIDENT AND NOT ORDINARILY RESIDENT AFTER BEING P ROCESSED ON ITA NO.1451/AHD/09 2 17.3.2005 U/S 143(1)OF THE INCOME-TAX ACT 1961 [HE REINAFTER REFERRED TO AS THE ACT] WAS SELECTED FOR SCRUTIN Y WITH THE SERVICE OF A NOTICE U/S 143(2) OF THE ACT ON 23-08-2005.DURING THE COURSE OF ASSESSMENT PROCEEDINGS THE ASSESSING OFFICER[AO IN SHORT] NOTICED THAT AN AMOUNT OF RS.1 92 388/- BEING TAX PAYABLE B Y THE ASSESSEE WAS BORNE BY THE EMPLOYER. SINCE GROSSING UP OF THE TAX WAS NOT CONSIDERED IN TERMS OF PROVISIONS OF SEC.195A OF TH E ACT THE AO ADDED THE AMOUNT OF GROSSING UP OF TAX BORNE BY THE EMPLOYER BESIDES ADDITION OF PERQUISITES AS PER FORM 12BA. A S A RESULT INCOME WAS DETERMINED AT RS.27 20 554/-. 3. ON APPEAL THE LEARNED CIT(A) UPHELD THE FINDING S OF THE AO IN THE FOLLOWING TERMS:- AFTER A COMPARATIVE STUDY OF THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER AND WRITTEN SUBMISSION FILED BY T HE LD. COUNSEL FOR THE APPELLANT I AM INCLINED TO AGREE WITH THE VIEW OF THE ASSESSING OFFICER HENCE THE ASSESSMENT ORDER PASSED BY THE ASSESSING OFFICER IS APPROVED AS IT IS. 4. THE ASSESSEE IS IN APPEAL BEFORE US AGAINST THE AFORESAID FINDINGS OF THE LEARNED CIT(A). NONE APPEARED ON BE HALF OF THE ASSESSEE AND INSTEAD WRITTEN SUBMISSIONS HAVE BEEN FILED. TO A QUERY BY THE BENCH THE LEARNED DR ADMITTED THAT TH E ORDER OF THE CIT(A) IS A NON-SPEAKING ORDER. 5 WE HAVE HEARD THE LD. DR AND GONE THROUGH THE F ACTS OF THE CASE. A MERE GLANCE AT THE IMPUGNED ORDER REVEALS T HAT THE ORDER PASSED BY THE LD. CIT(A) IS CRYPTIC AND GROSSLY VI OLATIVE OF ONE OF THE FACETS OF THE RULES OF NATURAL JUSTICE NAMELY THAT EVERY JUDICI AL/QUASI-JUDICIAL BODY/AUTHORITY MUST PASS REASONED ORDER WHICH SHOULD REFLECT APPL ICATION OF MIND BY THE CONCERNED AUTHORITY TO THE ISSUES/POINTS RAISED BEF ORE IT. THE APPLICATION OF MIND TO THE MATERIAL FACTS AND THE ARGUMENTS SHOULD MANI FEST ITSELF IN THE ORDER. SECTION 250(6) OF THE INCOME TAX ACT 1961 MANDATES THAT THE ORDER OF THE CIT(A) WHILE DISPOSING OF THE APPEAL SHALL BE IN WR ITING AND SHALL STATE THE POINTS ITA NO.1451/AHD/09 3 FOR DETERMINATION THE DECISION THEREON AND THE REA SON FOR THE DECISION. THE REQUIREMENT OF RECORDING OF REASONS AND COMMUNICATI ON THEREOF HAS BEEN READ AS AN INTEGRAL PART OF THE CONCEPT OF FAIR PROCEDUR E. THE REQUIREMENT OF RECORDING OF REASONS BY THE QUASI-JUDICIAL AUTHORITIES IS AN IMPORTANT SAFEGUARD TO ENSURE OBSERVANCE OF THE RULE OF LAW. IT INTRODUCES CLARIT Y CHECKS THE INTRODUCTION OF EXTRANEOUS OR IRRELEVANT CONSIDERATIONS AND MINIMIZ ES ARBITRARINESS IN THE DECISION-MAKING PROCESS. WE MAY REITERATE THAT A D ECISION DOES NOT MERELY MEAN THE CONCLUSION. IT EMBRACES WITHIN ITS FOLD THE REASONS FORMING BASIS FOR THE CONCLUSION.[MUKHTIAR SINGH VS. STATE OF PUNJAB (1995)1SCC 760(SC)]. AS IS APPARENT THE IMPUGNED ORDER SUFFERS FROM LACK OF R EASONING AND IS NOT A SPEAKING ORDER. IN VIEW OF THE FOREGOING ESPECIA LLY WHEN THE LD. CIT(A) HAS NOT PASSED A SPEAKING ORDER ON THE ISSUES RAISED IN T HIS APPEAL WE CONSIDER IT FAIR AND APPROPRIATE TO SET ASIDE THE ORDER OF THE LD. C IT(A) AND RESTORE THE MATTER TO HIS FILE FOR DECIDING THESE ISSUES AFRESH IN ACCOR DANCE WITH LAW AFTER ALLOWING SUFFICIENT OPPORTUNITY TO BOTH THE PARTIES. NEEDLES S TO SAY THAT WHILE REDECIDING THE APPEAL THE LEARNED CIT(A) SHALL PASS A SPEAKIN G ORDER KEEPING IN MIND INTER ALIA THE MANDATE OF PROVISIONS OF SEC. 250(6) OF T HE ACT AND. WITH THESE OBSERVATIONS GROUND NOS. 2 & 3 IN THE APPEAL ARE DISPOSED OF. 6. GROUND NO.1 BEING GENERAL IN NATURE DOES NOT RE QUIRE ANY SEPARATE ADJUDICATION WHILE NO ADDITIONAL GROUND HA VING BEEN RAISED IN TERMS OF THE RESIDUARY GROUND THESE GROUNDS ARE DISMISSED. 7.. IN THE RESULT APPEAL IS PARTLY ALLOWED BUT FOR STATISTICAL PURPOSES ORDER PRONOUNCED IN THE COURT TODAY ON24-02-2011 SD/- SD/- (BHAVNESH SAINI) JUDICIAL MEMBER (A N PAHUJA) ACCOUNTANT MEMBER DATED : 24-02-2011 COPY OF THE ORDER FORWARDED TO: ITA NO.1451/AHD/09 4 1. LENNART STRANDBERG C/O ABB LIMITED KHANJI BHAV AN II FLOOR EAST WING RACE COURSE ROAD BANGALORE-560 0 01 2. ACIT CIRCLE-6 BARODA 3. CIT CONCERNED 4. CIT(A)-XXI AHMEDABAD 5. DR ITAT AHMEDABAD BENCH-B AHMEDABAD 6. GUARD FILE BY ORDER DEPUTY REGISTRAR ASSISTANT REGISTRAR ITAT AHMEDABAD