PRINCIPAL COMMISSIONER OF INCOME TAX-1 vs. MUKESH KUMAR SONI,

Facts

The appeal is filed by the Principal Commissioner of Income Tax-1, Jaipur (Revenue) against an order dated 04.03.2024 passed by the Income Tax Appellate Tribunal (Tribunal). The Tribunal disposed of cross-objections filed by the assessee, Mukesh Kumar Soni, as infructuous. However, in the concluding paragraph, the Tribunal recorded that for statistical purposes, the cross-objections were allowed. The Revenue's appeal arises from this order. There is no dispute that the assessee's cross-objections had indeed become infructuous because the addition made by the Department was struck down by the Commissioner of Income Tax (CIT) in appeal, and the CIT's order was upheld on merits.

Held

The High Court clarified that the Tribunal had disposed of the cross-objections as infructuous. The appeal was disposed of with this clarification. The High Court did not delve into the merits of the Tribunal's decision to allow the cross-objections for statistical purposes, but rather focused on the fact that the underlying issue leading to the cross-objections had already been decided in favour of the assessee by the CIT, and this decision was upheld. Therefore, the operative direction was to clarify the Tribunal's disposal of the cross-objections as infructuous, effectively accepting the procedural outcome without a detailed examination of the statistical allowance.

Key Issues

1. Whether the Tribunal erred in allowing the cross-objections filed by the assessee for statistical purposes when they were rendered infructuous on merits. (Question of law) Assessee's Contention: The assessee's counsel appeared on advance notice. No specific arguments were recorded for the assessee in the provided text regarding the Tribunal's order. Revenue's Contention: The Revenue contends that the Tribunal's order, which allowed the cross-objections for statistical purposes despite them being infructuous, is erroneous. The Revenue argues that the Tribunal should have simply noted that the cross-objections were infructuous without allowing them even for statistical purposes.