THE COMMISSIONER OF INCOME TAX vs. M/S SATNAM OIL MILLS LTD.

ITA/419/2010HC Punjab & HaryanaPHHC01093350201003 February 2011Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryRemanded

What were the facts?

The Revenue, Commissioner of Income-Tax, Patiala, filed Income Tax Appeal No. 419 of 2010 against an order dated 30.7.2009 passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'A'. The appeal pertains to the assessment year 2004-05. The ITAT had dismissed the Revenue's appeal without adjudicating on merits. The Revenue's grievance was that the Assessing Officer had failed to apply his mind to the case before directions were given under Section 263, and that a departmental appeal against a prior ITAT order (dated 31.12.2008) was pending before the Punjab & Haryana High Court in ITA No. 373/2009. The assessee is M/s Satnam Oil Mills Ltd., Patran (Pb.).

What did the High Court hold?

The High Court noted that both parties stated the matter was covered by the Court's order dated 30.4.2010 in ITA No. 373 of 2009 (The Commissioner of Income-tax, Patiala Vs. M/s Satnam Oil Mills Ltd.). Consequently, the High Court disposed of the present appeals in the same terms. The matter was remanded to the Commissioner of Income Tax (Appeals) [CIT(A)] for further proceedings in accordance with the law. The assessee was directed to appear before the CIT(A) on 28.3.2011. The specific reasoning of the ITAT's order being flawed or correct was not elaborated upon by the High Court, as it relied on a previous order. No issue was expressly left undecided.

What were the issues?

1. Whether, in the facts and circumstances of the case, the learned ITAT was right in law in dismissing the Revenue's appeal without adjudicating on merits, ignoring the fact that the Assessing Officer, prior to the directions given under Section 263, had failed to apply his mind to the case in all perspectives and that the Departmental Appeal against the ITAT's order dated 31.12.2008 is still pending with the Hon'ble High Court of Punjab & Haryana at Chandigarh (ITA No. 373/2009)? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue contended that the ITAT erred in dismissing its appeal without deciding on the merits. It argued that the Assessing Officer had not properly applied his mind to the case before Section 263 directions were issued, and that a related appeal (ITA No. 373/2009) was pending before the High Court. The Revenue relied on the pendency of this related appeal as a reason for the ITAT's dismissal to be improper.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 263

AI-generated summary — verify with the full judgment below

Income-tax Appeal No.419

of 2010

-1- **** IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Income-tax Appeal No.419

of 2010

Date of decision: 3.2.2011 The Commissioner of Income-Tax, Patiala ...Appellant Versus M/s Satnam Oil Mills Ltd. Patran (Pb.) ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE AJAY KUMAR MITTAL Present: Ms. Urvashi Dhugga, Senior Standing Counsel for the appellant.

**** ADARSH KUMAR GOEL, J (

Oral)

.

1.

This order shall dispose of Income Tax Appeals No.418 and 419 of 2010 as it is stated that both the appeals involve common question.

2.

ITA No.419 of 2010 has been preferred by the revenue under Section 260-A of the Income Tax Act, 1961 against the order dated 30.7.2009 of the Income Tax Appellate Tribunal, Chandigarh Bench 'A', Chandigarh in I.T.A. No.568/Chd/2009 for the assessment year 2004-05 proposing to raise following substantial question of law:- i) Whether in the facts and circumstances of the case, the ld. ITAT was right in law in dismissing the Income-tax Appeal No.419

of 2010

-2- **** Revenue's appeal without adjudicating on merits, igno

The order continues below.

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