The jurisdiction of the Tribunal in issuing certain directions while remanding the matter to the Assessing Officer are held as unsustainable and against law by the Madras High Court in 16 ITR-OL 481.
Simple matter related to the question whether the appellant was liable to deduct tax at source on business development commission. The Tribunal observed in paragraph 11 that the AO had to examine whether there was any concerted effort to shift profits by camouflaging them as commission on sales which was never the case of the Revenue.
In reminding of the powers of the Tribunal the High Court made the following relevant observations :
“The Tribunal is the final fact finding authority. Nevertheless, the jurisdiction of the Tribunal is confined to the lis before it. The Tribunal cannot pass an order of remand for further enquiry on an issue which has already reached finality.”(emphasis supplied)
Yet further the Court held that instances of this sort would have the effect of reopening concluded proceedings and that an assessee cannot be worse off in their appeal