C I T vs. ROSHAN KASHYAP

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ITA/951/2008HC Punjab & HaryanaPHHC01080995200824 October 2013Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE JASPAL SINGH2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal was right in dismissing the miscellaneous application filed by the Revenue under Section 254(2) of the Act. This decision was based on the Court's order of even date in a connected appeal (ITA No. 251 of 2005) concerning assessment year 2003-04, which had held that a reference under Section 142A of the Act to the Departmental Valuation Officer was unjustified. Consequently, the substantial question of law framed by the Revenue was answered against the Revenue and in favour of the assessee. The appeal filed by the Revenue was dismissed. The ratio decidendi is that the retrospective applicability of Section 142A, as introduced by the Finance (No.2) Act 2004, would not override the existing legal position regarding the justification of references to the Departmental Valuation Officer, especially when the assessment was not final and the Tribunal had already passed an order on the merits of the case.

What were the facts?

The Revenue (Commissioner of Income Tax, Karnal) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 17.11.2006 passed by the Income Tax Appellate Tribunal (ITAT), Delhi. The ITAT had dismissed the Revenue's miscellaneous application (M.A.No.329/Del/06 in ITA No.4003/Del/2003) for the assessment year 1998-99. The Revenue's application sought rectification based on the retrospective amendment introducing Section 142A of the Act, effective from 15.11.1972, by the Finance (No.2) Act 2004. The Revenue argued that the assessment was not final as it was subject to appellate proceedings. The ITAT rejected the application, holding Section 142A inapplicable because the assessment was completed before 30.09.2004 and the Tribunal's order was passed before that date.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in dismissing the miscellaneous application of the revenue by holding that Section 142A is not applicable as assessment was made before 30.9.2004, while ignoring the fact that the assessment had not become final and conclusive as the same was subject matter of appellate proceedings? (Question of law) Assessee's Contentions: The judgment does not record any specific contentions made by the assessee in this appeal. However, it refers to a connected appeal (ITA No. 251 of 2005) where the Tribunal's decision to dismiss the miscellaneous application was upheld. Revenue's Contentions: The Revenue contended that Section 142A, retrospectively introduced by the Finance (No.2) Act 2004, was applicable even though the assessment was completed before 30.09.2004, because the assessment was still subject to appellate proceedings and therefore not final.

Which sections of the Income-tax Act were involved?

Section 260A,Section 142A,Section 254(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of decision: 24.10.2013 Commissioner of Income Tax, Karnal …Appellant Vs. Shri (Dr.) Roshan Kashyap …Respondent CORAM: HON’BLE MR. JUSTICE AJAY KUMAR MITTAL HON’BLE MR. JUSTICE JASPAL SINGH Present: Mr. Yogesh Putney, Advocate for the appellant. Mr. S.K.Mukhi, Advocate for the respondent. Ajay Kumar Mittal,J.

1.

This appeal has been preferred by the revenue under section 260A of the Income Tax Act, 1961 (in short, “the Act”) against the order dated 17.11.2006, Annexure A.6, passed by the Income Tax Appellate Tribunal, Delhi in M.A.No.329/Del/06 in ITA No.4003/Del/2003, for the assessment year 1998-99, claiming following substantial questions of law:- “Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was right in law in dismissing the misc. application of the revenue by holding that Section 142A is not applicable as assessment was made before 30.9.2004 while ignoring the fact that assessment has not become final and conclusive as the same was subject matter of appellate proceedings?” Singh Gurbax 2013.11.19 10:04 I attest to the accuracy and integrity of this document High Court Chandigarh

2.

The facts being identical have been mentioned in connected ITA No.251 of 2005. In this case, after the filing of the appeal under Section 260A of the Act in this Court i.e. ITA No.251 of 2005, the revenue moved a miscellaneous application under Section 254(2) of the Act for rectification on 27.7.2005 before the Tribunal in view of the retrospective amendment of the Act by introducing Section 142A by Finance (No.2) Act 2004 w.e.f 15.11.1972. The Tribunal vide order dated 17.11.2006, Annexure A.6, rejected the said application holding that provisions of Section 142A of the Act were not applicable as assessment was completed before 30.9.2004 and the order of the Tribunal was passed before this date. Hence the present appeal.

3.

We have heard learned counsel for the parties and perused the record.

4.

In view of our order of even date passed in ITA No.251 of 2005 relating to the assessment year 2003-04, holding that reference under Section 142A of the Act to the Departmental Valuation Officer was unjustified, the Tribunal was right in dismissing the miscellaneous application under Section 254(2) of the Act. Consequently, the substantial question of law is answered against the revenue and in favour of the assessee. The appeal stands dismissed. (Ajay Kumar Mittal) Judge October 24, 2013

(Jaspal Singh) 'gs' Judge Singh Gurbax 2013.11.19 10:04 I attest to the accuracy and integrity of this document High Court Chandigarh

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