Income Tax Appellate Tribunal - Ahmedabad
Nagendra Narayan Sharma,, Bharuch vs Assessee
IN THE INCOME TAX APPELLATE TRIBUNAL
AHMEDABAD BENCH "D"
BEFORE SHRI N.S. SAINI, ACCOUNTANT MEMBER and
Shri MAHAVIR SINGH, JUDICIAL MEMBER
Date of hearing: 30.10.2009 Drafted on 3.11.09
ITA No.149/AHD/2005
Assessment Year : 2000-2001
Nagendra Narayan Vs. Income Tax Officer,
Sharma Ward(3),
C/O. Bhupendra C. Bharuch.
Mehta
15, Ajanta Nagar, Opp.
288 Sidhnath Nagar,
Bharuch-392 001
PAN/GIR No. : AGYPS9015N
(APPELLANT) .. (RESPONDENT)
Appellant by : Shri M.K.Patel
Respondent by: Shri C.K.Mishra Sr. D.R.
ORDER
PER N.S.SAINI , ACCOUNTANT MEMBER :-
This is an appeal filed by the Assessee against the order of the ld.CIT(Appeals)-IV, Baroda, dated 2.11.2004.
2. Ground nos.1 and 2 of the appeal reads as under:
"1. The order of the respondent Assessing Officer (Respondent AO) is without jurisdiction, without authority of law and hence void abinitio.
2. The Respondent AO has grossly erred in holding that the payment of Rs.7 lakhs is a compensation for employers' obligation under law. The employer had paid separately for his legal obligation. There was no more and other than those any legal obligation for which the employer was under obligation whatsoever to pay the amount. The amount of Rs.7 lacs received by the appellant is not as a compensation in connection with the loss of ITA No.149/Ahd/2005 M/s.Nagendra Narayan Sharma Asst.Year -2000-01 -2- employment due to closure of concern of the employer and therefore, is not taxable u/s. 17(3)(i) of the Act. The term compensation is defined at many places as under.
3. Since the facts and issues involved in all the above three appeals are common, they are being disposed of together by this consolidated order.
4. The learned Authorized Representative of the assessee filed copy of the order of the "D" Bench of the Tribunal in ITA No.3918, 3920 and 3921/Ahd/2004 A. Y: 2000-01,2000-01 and 2000-01 in the case of Lataben R. Baraiya, Eftekhar Ahmed Ansari and Julfikar Khan Vs. The Income Tax Officer, Ward (3), Bharuch order dated 20.10.2009 and submitted that the issue involved in the present appeal is same as was in the above cited decision of the Tribunal and therefore, following the above cited order, the matter should be remanded back to the file of the Learned Assessing Officer for re-adjudication of the issue involve in this appeal.
5. The Learned Departmental Representative also agreed with the submission made by the Learned Authorised Representative of the Assessee.
6. We have heard the rival submissions and perused the orders of the lower authorities and the materials available on record.
7. In this appeal, one of the grounds of appeal of the assessee is that he was not allowed sufficient opportunity in respect of the directions given by the JCIT under section 144A of the Act. Further, it is also observed that the assessee has relied upon the decision of the Tribunal in the case of Deepak Verma Vs DCIT (2008) 22 SOT 345 (Delhi) which could not be ITA No.149/Ahd/2005 M/s.Nagendra Narayan Sharma Asst.Year -2000-01 -3- considered by the Lower Authorities. At time of the hearing Learned Departmental Representative admitted that it shall be fair and in the interest of the justice to restore the matter back to the file of the Learned Assessing Officer for adjudication after taking into consideration the aforesaid decision of the Tribunal and after allowing sufficient opportunity of hearing to the assessee. We therefore set aside the orders of the lower authorities and restore the matter back to the file of the Learned Assessing Officer with the above mentioned directions. Thus the appeal of the assessee is allowed for statistical purposes.
8. In the result, the appeal of the assessee is allowed for statistical purposes.
Order pronounced in Court at the close of the hearing on 30.10.2009.
Sd/- Sd/- (MAHAVIR SINGH) (N. S. SAINI) JUDICIAL MEMBER ACCOUNTANT MEMBER Date:30-10-2009 Prepared and Compared by: Paras ITA No.149/Ahd/2005 M/s.Nagendra Narayan Sharma Asst.Year -2000-01 -4- Copy of the order forwarded to: 1. The appellant 2. Respondent 3. CIT(A) concerned 4. The CIT concerned 5. The D.R. ITAT, Ahmedabad, 6. Guard File BY ORDER स᭜यािपत ᮧित //True Copy// DR / AR, ITAT, Ahmedabad