Commissioner Of Income Tax Iv , Nagpur v. M/S Nirman Real Estate, Nagpur

IN THE HIGH COURT OF JUDICATURE AT BOMBAYNAGPUR BENCH, NAGPUR. INCOME TAX APPEAL NO. 9/2010 (Commissioner of Income Tax IV , Nagpur vs. M/s Nirman Real Estate, Nagpur ) _______________________________________________________________________Office Notes, Office Memoramda of Coram,appearances, Court's orders of directionsCourt's or Judge's orders.and Registrar's Orders. ______________________________________________________________________________ CORAM : B.P.DHARMADHIKARI& A.P.BHANGALE, JJ. DATED : 24th November, 2011. Heard Shri Anand Parchure, learned counsel for the appellant and Mr C J. Thakar , learned counsel for respondent. The following substantial questions of law arise for consideration before us :- (1)Whether the ITAT as also CIT(A) were right in referring to provisions of Section 200(1) of the Income Tax Act, 1961 or, then date relevant for considering the payment of TDS here should have been in accordance with Section 40 (a) (ai)? (2)Under the facts and circumstances of the case when the assessee was following project completion method and accordingly no income had accrued during the year and consequently when there was no question of computation of income chargeable under the head “ Profit and gains of business” during the year, was the Tribunal right in invoking the provision of Section 40 (ia) of the I.T.Act, 1961 and holding it to be applicable to the facts of the case? (3)Whether looking to the consequences which ensue if TDS is not deposited within time, the concept of neutralization as adopted by the ITAT in paragraph 9 is relevant or not? Both the learned counsel have advanced their rival contention. However after some arguments, it was agreed that as ITAT is has not considered some of the aspects having bearing on these questions, the matter be placed before the ITAT for fresh consideration Thus, without recording any finding on any question of law and keeping all contentions open, we set aside the order dated 16.6.2009 and place back the matter before the Income Tax Appellate Tribunal (I.T.A.T.) for fresh decision in accordance with law. Income Tax Appeal No.9/2010 is disposed of accordingly. JUDGE JUDGE