DIRECTOR OF INCOME TAX Vs. SHERATON INTERNATIONAL INC

JUDGEMENT

(1.) THIS appeal by the Revenue under Section 260A of the IT Act, 1961 (for short 'the Act'), is directed against the order, dt. 23rd Oct., 2002, passed by the Income -tax Appellate Tribunal (for short the Tribunal) in assessed's appeals (ITA No. 2216/Del/2001 and ITA No. 253/Del/2002) pertaining to the asst. yrs. 1997 -98 and 1998 -99. By the impugned order the Tribunal has set aside the orders passed by the CIT(A) for both the assessment years and has restored the matter to the file of AO for fresh adjudication in accordance with law. According to the appellant, the order of the Tribunal involves the following substantial questions of law : '1. Whether the Tribunal was right in law in failing to decide the appeals filed by the assessed on merits and remanding the matter back to the AO?

(2.) WHETHER the Tribunal was right in law in remanding the matter back to the AO to determine whether the income received by the assessed is chargeable to tax under Sections 4, 5 and 9 of the IT Act, 1961, when the assessed had not disputed and questioned the same before the AO, the CIT(A) and learned Tribunal and there was sufficient material before the learned Tribunal to decide the entire controversy?' 2. We have heard Mr. Sanjeev Khanna, learned Senior Standing Counsel for the Revenue and Mr. Ajay Vohra, learned counsel for the respondent/assessed.

(3.) WE find substance in the contention urged on behalf of the assessed.