Commissioner of Income Tax III vs Bharuch Eco Aqua Infrastructure Ltd.

Akil Kureshi, J.—Revenue is in appeal against judgment of the Income Tax Appellate Tribunal ("the Tribunal" for short) dated 23.3.2012. Question framed for our consideration is as follows:

Whether the decision of the Hon''ble Appellate Tribunal is perverse both in law and on facts in not applying the ratio of Hon''ble Supreme Court decision in case of Tuticorin Alkali Chemicals and Fertilizers Ltd., Madras Vs. Commissioner of Income Tax, Madras, , particularly when it was admitted by the assessee that surplus fund was parked in banks?

Having heard learned counsel for the Revenue and having perused the judgments on record, we notice that the Tribunal has merely remanded the question for Assessing Officer''s consideration. Though the learned counsel for the Revenue vehemently contended that the issue was squarely covered by virtue of decision of the Supreme Court in case of Tuticorin Alkali Chemicals and Fertilizers Ltd., Madras Vs. Commissioner of Income Tax, Madras, , we are of the opinion that when remand is made by the Tribunal for consideration of all factors, we would not like to interfere in absence of any question of law. Surely the Assessing Officer has to apply the law laid down by the Supreme Court in the said case as well as in subsequent decisions and decide the applicability of ratio on facts of the case.

With above clarification, tax appeal is dismissed.