ZAVERCHAND GAEKWAD LIMITED vs. INCOME TAX OFFICER WARD 4 (4)

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TAXAP/870/2009HC GujaratGJHC24040928200914 September 2022Author: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR,HONOURABLE MR. JUSTICE ASHUTOSH SHASTRI3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court noted that a co-ordinate bench had previously answered the substantial question of law concerning Section 55A in favour of the assessee in the case of Commissioner of Income Tax v. Gauranginiben S. Shodhan Indl. (367 ITR 238). Following this precedent, and given that the assessee's counsel stated they would not press the first substantial question of law (related to Section 147) in light of the favourable decision on the second question, the Court allowed the appeal. The substantial question of law was answered in favour of the assessee. The Court did not expressly leave any issue undecided. The operative direction was to allow the appeal.

What were the facts?

The appeal concerns the assessment year 2005-06. The assessee, Zaverchand Gaekwad Limited, is challenging an order of the Income Tax Appellate Tribunal (ITAT). The Assessing Officer (AO) had invoked Section 147 of the Income Tax Act, 1961, to reopen the assessment. Furthermore, the AO invoked Section 55A of the Act to refer the property's fair market value as of 01.04.1981 to the District Valuation Officer (DVO). The assessee is aggrieved by the ITAT's decision upholding the AO's actions.

What were the issues?

The Tribunal had to decide two substantial questions of law: 1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 147 of the Income Tax Act, 1961, for re-opening of the assessment for the Assessment Year 2005-06. 2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 55A of the Income Tax Act, 1961, to the District Valuation Officer (DVO) for ascertaining the Fair Market Value of the property as on 01.04.1981? The assessee argued that since the second substantial question of law was answered in its favour by a co-ordinate bench in the case of CIT v. Gauranginiben S. Shodhan Indl., it would not press the first substantial question of law. The revenue's contentions are not explicitly recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 147,Section 55A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/870/2009 JUDGMENT DATED: 14/09/2022 IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 870 of 2009 With CIVIL APPLICATION (FIXING DATE OF EARLY HEARING) NO. 1 of 2022 In R/TAX APPEAL NO. 870 of 2009 FOR APPROVAL AND SIGNATURE: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI ============================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India or any order made thereunder ? ============================================= ZAVERCHAND GAEKWAD LIMITED Versus INCOME TAX OFFICER WARD 4 (4) ============================================= Appearance: MR BANDISH SOPARKAR for MRS SWATI SOPARKAR(870) for the Appellant(s) No. 1 MR.VARUN K.PATEL(3802) for the Opponent(s) No. 1 ============================================= CORAM:HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR and HONOURABLE MR. JUSTICE ASHUTOSH J. SHASTRI Date : 14/09/2022

ORAL JUDGMENT (PER : HONOURABLE THE CHIEF JUSTICE MR. JUSTICE ARAVIND KUMAR)

1.

In this appeal following substantial question of law has C/TAXAP/870/2009 JUDGMENT DATED: 14/09/2022 been raised :- “1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 147 of the Income Tax Act, 1961, for re-opining of the assessment for the Assessment Year 2005-06. 2. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the Assessing Officer was justified in invoking the provisions of Section 55A of the Income Tax Act, 1961, to the District Valuation Officer (DVO) for ascertaining the Fair Market Value of the property as on 01.04.1981?”

2.

The co-ordinate Bench in the matter of Commissioner of Income Tax v. Gauranginiben S. Shodhan Indl., reported in 367 ITR 238 has answered the substantial question of law framed in the instant appeal, namely in relation to the provisions of Section 55A of the Income Tax Act, 1961. 3. However, the learned counsel appearing for the appellant submits that in light of substantial question of law no. 2 having been answered by this Court in favour of the appellant, he would not press, substantial question of law no. 1 framed in the appeal memorandum as well as by this Court. His submission is placed on record. C/TAXAP/870/2009 JUDGMENT DATED: 14/09/2022

4.

Since, substantial question of law framed in this appeal, stands fairly covered in favour of the assessee by judgment of Apex Court in Gauranginiben’s case referred to supra, this appeal is allowed by answering the substantial question of law in favour of the assessee. No orders as to costs. Pending application stands consigned to record as it would not survive for consideration. (ARAVIND KUMAR,CJ) (ASHUTOSH J. SHASTRI, J) phalguni

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