Nutek Technologies Private Limited,, ... vs Assessee

Nutek Technologies Private Dy. Commissioner of Limited,57 Vayupuri, Vs. Income Tax, Circle 16(1) Secunderabad 500094 Hyderabad PAN- AAACN 8015 F (Appellant) (Respondent)

For Assessee : Shri Abhay Singh For Revenue : Shri Rajat Mitra, DR

Date of Hearing : 21.04.2015 Date of Pronouncement : 24.04.2015

ORDER

Per Smt.P. Madhavi Devi, J.M.

This is an appeal preferred by the assessee against the order of the CIT (A)-V, Hyderabad, dated 31.03.2014 relating to A.Y 2010-11.

2. Brief facts of the case are that the assessee company which is in the business of manufacture of electronic items, furnished its return of income for A.Y 2010-11 on 15.10.2010 admitting total income of Rs.17,75,460. During the assessment proceedings u/s 143(3) of the I.T. Act, AO observed that the assessee has claimed 'R and D expenses' to the extent of Rs.71,75,420. Assessee was asked to furnish the details of R&D claimed by it. In respose to the same, assessee filed ledger copy

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of the R&D expenses, but supporting vouchers for the claim of R&D expenditure were not furnished and even the note on the R&D expenses and the allowability of the same was not furnished. AO further observed that even in the return of income, assessee has not claimed any deduction u/s 35 of the Act. In view of the same AO disallowed the claim of R & D expenses and brought it to tax.

3. Aggrieved, the assessee preferred appeal before the CIT (A) along with necessary details. The CIT (A) called for a remand report from the AO. Thereafter the CIT (A) confirmed the addition made by the AO.

4. Aggrieved, the assessee is in second appeal before us. Though assessee has raised as many as 13 grounds of appeal, the ld Counsel for the assessee submitted that its contest was mainly on Ground No.9. He submitted that the ld CIT (A) had called for a remand report from the AO, but without waiting for the remand report, has confirmed the addition. He submitted that the order of the CIT (A) was dated 31.03.2014, whereas the AO has submitted the remand report on 12.06.2014 wherein he has accepted that the claim of the assessee is in order. A copy of the remand report dated 12.6.2014 is filed before us.

5. After hearing the ld DR and after consideration of the remand report of the AO filed by the assessee, we find that the claim of the assessee has been found to be in order by the AO. We find that the CIT (A), without waiting for the remand report has confirmed the addition, which is not justifiable. Therefroe,

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we deem it proper and fit to set aside the order of the CIT (A) and direct the CIT (A) to reconsider the claim of the assessee in the light of the remand report of the AO. The other grounds of appeal are not adjudicated at this stage.

6. In the result, assessee's appeal is treated as allowed for statistical purposes.

Order pronounced in the Open Court on 24thApril, 2015.

Sd/- Sd/- (P.M. Jagtap) (P. Madhavi Devi) Accountant Member Judicial Member

Hyderabad, dated 24th April, 2015.

Vnodan/sps Copy to:

1. Nutek Technologies Private Limited,57 Vayupuri, Secunderabad 500094

2. Dy. Commissioner of Income Tax, Circle 16(1) Hyderabad

3. The CIT(A) V Hyderabad

4. The CIT - IV Hyderabad

5. The DR, ITAT, Hyderabad

6. Guard File

By Order

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