SOFTOUCH HYGINE PRODUCTS (MKT.) PVT. LTD. vs. DY. COMMISSIONER OF INCOME-TAXCO.CIR 7(6) OR HIS SUCCESSOR

TAXAP/1387/2007HC GujaratGJHC24041256200705 December 2014Author: HONOURABLE MR. JUSTICE KS JHAVERI,HONOURABLE MR. JUSTICE K.J.THAKER4 pages
AI SummaryRemanded

Facts

The appellant-assessee, Softouch Hygine Products (Mkt.) Pvt. Ltd., filed its return of income for Assessment Year 1997-98 on November 28, 1997, declaring a total income of Rs. 55,060. The Revenue issued a notice under Section 143(2) of the Income Tax Act, 1961. The Assessing Officer (AO) made additions/disallowances, leading the assessee to appeal to the Commissioner of Income Tax (Appeals) [CIT(A)]. The CIT(A) partly allowed the appeal. Both the assessee and the Revenue were dissatisfied with the CIT(A)'s order and filed separate appeals before the Income Tax Appellate Tribunal (ITAT). The ITAT dismissed the assessee's appeal, resulting in the present appeal to the High Court.

Held

The High Court noted that a related Tax Appeal No. 1386 of 2007, arising from the same ITAT order, had been remanded to the Tribunal for fresh consideration. Consequently, the Court deemed it just and proper to also refer the present matter to the Tribunal for fresh consideration on merits and in accordance with law. The High Court quashed and set aside the ITAT's order dated March 16, 2007, and remanded the matter to the Tribunal. The Tribunal was directed to decide the matter at the earliest after providing an opportunity of hearing to the parties. The High Court explicitly stated that it had not entered into the merits of the case. No issue was expressly left undecided, as the entire matter was remanded.

Key Issues

1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in confirming disallowances without passing a speaking and reasoned order and by ignoring material/evidence on record regarding (i) foreign travel expenses of Rs. 3,20,515/-, (ii) medical expenses of Rs. 1,70,000/-, (iii) marketing commercial expenses of Rs. 3,10,027/-, (iv) sales promotion expenses of Rs. 1,35,123/-, and (v) traveling expenses of Rs. 77,506/-. The assessee contended that the Tribunal failed to provide a speaking and reasoned order and ignored material evidence. The Revenue's contentions are not recorded in the judgment.

Sections Cited

Section 143(2)

AI-generated summary — verify with the full judgment below

O/TAXAP/1387/2007 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1387 of 2007

FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER ================================================================ 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, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ SOFTOUCH HYGINE PRODUCTS (MKT.) PVT. LTD.....Appellant(s) Versus DY. COMMISSIONER OF INCOME-TAXCO.CIR 7(6) OR HIS SUCCESSOR....Opponent(s) ================================================================ Appearance: MR SN DIVATIA, ADVOCATE for the Appellant(s) No. 1 MR NITIN K MEHTA, ADVOCATE for the Opponent(s) No. 1 ========================================================

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