The Income Tax Appellate Tribunal (ITAT), Bangalore Bench remitted the matter to AO on the issue of non-grant of depreciation on goodwill.
The assessee, NXP India Private Limited filed its original return declaring total income of Rs.47,88,62,424 and claimed short term capital loss of Rs.24,97,62,558 on slump sale of its wireless division to NF Wireless India Pvt. Ltd. (NFWIPL). Assessment was completed under section 143(3) read with section 144C of the Income-tax Act, 1961. The assessee went in appeal against the original assessment order before the CIT(Appeals). The AO issued a final assessment order wherein the adjustments/disallowances were made after due verification of the submissions made by the assessee.
The assessee filed an appeal before the CIT(Appeals) wherein the CIT (Appeals) in his ex parte dismissed all the grounds of appeal raised by the assessee.
With regard to non-grant of depreciation on the basis of additional ground in respect of depreciation on goodwill which was acquired by NXP India from Philips Electronics India Ltd. and Conexant India at the time of slump sale, the assessee filed appeal before the Tribunal.
The Tribunal vide order remanded the matter back to the file of AO for fresh consideration.
The AO passed a combined order giving effect to earlier orders of Tribunal with regard to original assessment and also reassessment order under section 143(3) read with section 147 of the Act which is incorrect. The AO must have passed distinct and separate orders giving effect to the Tribunal’s orders which is emanating from the assessment order passed under section 143(3) and fresh reassessment order which is emanating from reassessment notice.
The coram of N.V.Vasudevan and Chandra Poojari noted that AO passed a combined order giving effect to earlier orders of Tribunal with regard to original assessment and also reassessment order under section 143(3) read with section 147 of the Act which is incorrect.
“The AO must have passed distinct and separate orders giving effect to the Tribunal’s orders which is emanating from the assessment order passed u/s. 143(3) and fresh reassessment order which is emanating from reassessment notice dated 23.3.2016,” the ITAT observed.
Therefore, the ITAT remitted the issue in dispute in its entirety to the file of Assessing Officer to pass separate assessment orders, after giving the opportunity of being heard to the assessee.
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