CIT, CHANDIGARH vs. RAJNEESH BANSAL

PDF · subscribers
ITA/556/2010HC Punjab & HaryanaPHHC01093502201021 April 2016Author: MR. JUSTICE RAMENDRA JAIN,MR. JUSTICE JITENDRA CHAUHAN2 pages
AI SummaryDismissed

What did the High Court hold?

The appeal was dismissed as not pressed. The appellant-revenue, through its counsel, submitted that in view of CBDT Circular No. 21/2015 dated 10.12.2015 and Circular No. 279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, it did not wish to press the appeal as the tax effect involved was less than ₹20 lacs. The revenue prayed for liberty to file an application for revival of the appeal if something survived therein. The Court granted this liberty. It was clarified that the withdrawal of the appeal by the revenue would not be taken as an affirmation of the ITAT's order on merits, and the legal issue was left open to be adjudicated in an appropriate case. No finding was given on the merits of the ITAT's order.

What were the facts?

The appeal was filed by the Commissioner of Income Tax-II, Chandigarh (appellant-revenue) against an order dated January 29, 2010, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench (A). The ITAT had quashed reassessment proceedings initiated under Section 148 of the Income Tax Act, 1961, for the assessment year 1997-98. These proceedings were based on information from the investigation wing regarding accommodation entries provided by Shri N.K. Garg, CA, in the form of gifts and unsecured loans to various individuals, including the assessee, Sh. Rajneesh Bansal, Prop. Prince Motors (respondent). The Assessing Officer's action was approved by the Commissioner of Income Tax.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the order of the Hon'ble ITAT is perverse in quashing the assessment framed by the Assessing Officer, by initiating action u/s 148 of the Income-tax, duly approved by the Commissioner of Income-tax, based on the information supplied by the investigation wing relating to accommodation entries given by one Shri N.K. Garg CA to a large number of persons including the assessee in the shape of gifts and unsecured loans? (Question of law and fact, concerning Section 148 of the Income Tax Act, 1961). Contentions: Assessee: Not recorded in the judgment. Revenue: The ITAT's order is perverse. Proceedings u/s 148 were validly initiated as per the correct interpretation and spirit of Section 148. The ITAT failed to appreciate this, and quashing the reassessment proceedings would dilute the fight against tax evasion. The revenue relied on the interpretation of Section 148 of the IT Act.

Which sections of the Income-tax Act were involved?

Section 148,Section 260A

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 21.04.2016 Commissioner of Income Tax-II, Chandigarh .......Appellant Versus Sh. Rajneesh Bansal, Prop. Prince Motors ......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Ms. Urvashi Dhugga, Advocate for the appellant. Mr. Alok Mittal, Advocate for the respondent. RAJESH BINDAL,J. This appeal has been filed under Section 260 A of the Income Tax Act, 1961 (for short 'the Act'), against the order dated 29.1.2010 passed by the Income Tax Appellate Tribunal, Chandigarh Bench (A), in ITA No. 55/CHANDI/2009, for the assessment year 1997-98, raising the following substantial question of law: Whether on the facts and in the circumstances of the case, the order of the Hon'ble ITAT is perverse in quashing the assessment framed by the Assessing Officer, by initiating action u/s 148 of the Income- tax, duly approved by the Commissioner of Income- tax, based on the information supplied by the investigation wing relating to accommodation entries given by one Shri N.K. Garg CA to a large number of persons including the assessee in the shape of gifts and unsecured loans. The Hon'ble REEMA SAINI 2016.04.26 14:44 I attest to the accuracy and authenticity of this document High Court, Chandigarh

ITA No. 556 of 2010 (O&M) -2- Tribunal failed to appreciate that the proceedings u/s 148 were validly initiated as per the correct interpretation and spirit of Section 148 and there was no case for quashing of reassessment proceedings and if the interpretation of Hon'ble ITAT regarding scope of section 148 of the I.T. Act is accepted, it would severely dilute the fight against menace of tax evasion? Learned counsel for the appellant-revenue submitted that in view of circular No.21/2015 dated 10.12.2015 read with circular No.279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by Central Board of Direct Taxes, she does not wish to press the present appeal, as the tax effect involved is less than ` 20 lacs. However, she prays that liberty be granted to the revenue to file an application for revival of the appeal in case something survives therein. Dismissed as not pressed with liberty as prayed for. It is however, clarified that withdrawal of the appeal by the revenue shall not be taken as affirmation of order of the Tribunal on merits. The legal issue as claimed by the revenue is left open to be adjudicated in an appropriate case. (RAJESH BINDAL)

JUDGE (HARINDER SINGH SIDHU) 21.04.2016 JUDGE reema REEMA SAINI 2016.04.26 14:44 I attest to the accuracy and authenticity of this document High Court, Chandigarh

More judgments on Section 148

All 35,022 judgments and leading authorities on Section 148 →

Recent GST High Court judgments

Search GST case law →