COMMISSIONER OF INCOME TAX, BILASPUR vs. MOHD.KAYUM, SURAJPUR
What did the High Court hold?
The High Court held that the question of law raised by the Revenue was not debatable in view of its own prior decision in Income Tax Reference No. 76 of 1997, disposed of on January 30, 2004. In that earlier decision, the Court had observed that the Tribunal was justified in dismissing the Departmental appeal as incompetent, as per a Board's circular dated November 18, 1992, without deciding the case on merits. The High Court expressed full agreement with this view. Therefore, the question of law was answered against the Revenue and in favour of the assessee. The appeal was disposed of accordingly, upholding the ITAT's decision to delete the additions without deciding on merits.
What were the facts?
The appeal was filed by the Commissioner of Income Tax, Bilaspur against an order of the Income Tax Appellate Tribunal (ITAT), Jabalpur Bench. The ITAT's order, dated May 7, 2003, pertained to assessment year 1992-93 and concerned the deletion of additions made for unexplained investments and cash credits. The dispute arose from the ITAT's decision to uphold the Commissioner of Income Tax (Appeals) order, which had deleted these additions based on a Board's Instruction. The revenue challenged this deletion, arguing it was not decided on merits.
What were the issues?
1. Whether, on the facts and in the circumstances of the case, the learned Income Tax Appellate Tribunal was justified in upholding the order of the CIT(A) deleting the addition of unexplained investments and cash credits simply on the strength of Board's Instruction No. 1979 without deciding the issue on merits? Assessee's contentions: Not recorded. Revenue's contentions: The revenue contended that the ITAT was not justified in upholding the deletion of additions for unexplained investments and cash credits solely based on a Board's Instruction, without adjudicating the matter on its merits. The revenue sought to have the issue decided on its substantive legal grounds.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER (Passedon 22nd February, 2007) The following oral order of the Court was passed by H.L. Dattu, C.J. This appeal is directed against the order passed by the Income Tax Appellate Tribunal, Jabalpur Bench, Jabalpur in I.T.A. No.198/Jab/2000 for the assessment year 1992-93 dated 07.05.2003. (2) In the memorandum of appeal the appellant has raised the following question of law for our consideration and decision. They are as under: " SUBSTANTIAL QUESTION OF LAW (i) Whether on the facts and in the circumstances of the case, learned Income Tax Appellate Tribunal was justified in upholding the order of CIT [A] deleUng the addition of unexplained investments and cash credits simply on the strength of Board's Instruction No.1979 without deciding the issue on merits?" ~
'a w>^'A"r-^'-I^^^^B ^' -<5 (3) In our opinion, in view of the orders passed by this Court in Income Tax Reference No.76 of 1997 disposed of on 30.01 .2004, the questions of law raised by the Revenue are not debatable. In the aforesaid decision, this Court was pleased to observethat "having regard to the facts and circumstances of the case, we are of the opinion that the Tribunal was justified in law in dismissing the Departmental appeal as incompetent as per Board's circular dated 18.11.1992, without deciding the case on merite." (4) We are in full agreement with the view expressed in the aforesaid decision. Accordingly, the question of law raised by the -•-•*•", Revenue is answered against the Revenue and in favour of the assessee. Ordered accordingly. __ Chief Justice V-K-Shrivastava Judge
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