THE C.I.T vs. M/S SWARAJ ENGINES LTD.

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ITR/327/1995HC Punjab & HaryanaPHHC01032399199507 August 2007Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE M.M. KUMAR3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the questions of law referred to it had become academic. This was because the revenue had informed the court that no appeal was filed against subsequent orders passed by the ITAT in related matters for assessment years 1990-91 and 1991-92. Furthermore, the revenue had accepted the order passed after the remand, which was the subject of the original challenge in the reference. Consequently, the High Court found no necessity to decide the referred questions of law and returned the reference unanswered. No specific finding was given on the merits of the ITAT's order regarding the remand or the rectification under Section 154(1)(b).

What were the facts?

The Commissioner of Income-tax, Patiala (revenue) has referred two questions of law to the High Court of Punjab and Haryana at Chandigarh concerning M/s Swaraj Mazda Ltd. (assessee) for the assessment year 1990-91. These questions arose from an order dated 22.9.1992 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1740/Chandi/1991. The revenue sought to challenge the ITAT's decision to remand the matter back for fresh adjudication and its finding regarding the possibility of rectification under Section 154(1)(b) when necessary evidence for deductions under Section 43B was not filed. The High Court noted that similar questions were raised in connected appeals. The revenue later informed the court that no appeal was filed against subsequent orders passed by the ITAT in ITA No. 890/Chandi/1993 (AY 1990-91) and ITA No. 1330/Chandi/1994 (AY 1991-92), and that the order passed after remand in the present case was accepted by the revenue.

What were the issues?

The High Court was asked to decide the following questions of law: 1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in remanding back the order of the CIT (A) to be decided afresh in terms of the decision of the ITAT reported at 31 ITD 305? 2. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that rectification U/s 154(1)(b) was also possible when the assessee did not file the necessary evidence in support of deductions exemptions claimed as required u/s 43B of the Act? Contentions: Assessee: Not recorded. Revenue: The revenue has not explicitly stated its contentions for these questions in the provided text. However, by referring these questions, it is implied that the revenue disagreed with the ITAT's findings on both points.

Which sections of the Income-tax Act were involved?

Section 256,Section 154,Section 43B,Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH DATE OF DECISION: 7.8.2007 The Commissioner of Income-tax, Patiala …Applicant Versus M/s Swaraj Mazda Ltd., Chandigarh …Respondent CORAM: HON’BLE MR. JUSTICE M.M. KUMAR HON’BLE MR. JUSTICE AJAY KUMAR MITTAL Present: Mr. S.K. Garg Narwana, Advocate, for the applicant-revenue. Mr. Prakul Khurana, Advocate, for the respondent-assessee. M.M. KUMAR, J. At the instance of the revenue the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for brevity, ‘the Tribunal’) has referred the following questions of law under Section 256(1) of the Income-tax Act, 1961 (for brevity, ‘the Act’), which is stated to have emerged from I.T.A. No. 1740/Chandi/1991 from its order dated 22.9.1992, in respect of the assessment year 1990-91:-

1.

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in remanding back the order of the CIT (A) to be decided afresh in terms of the decision of the ITAT reported at 31 ITD 305?

2.

Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that rectification U/s 154(1)(b) was also possible when the assessee did not file the necessary evidence in support of deductions exemptions claimed as required u/s 43B of the Act? Without going into the facts of the instant case it is apposite to mention here that when connected I.T.R. No. 316 of 1995, wherein similar questions of law have been referred to this Court for opinion, came up for hearing on 10.7.2007, learned counsel for the revenue sought a short adjournment to enable him to find out as to whether the revenue has filed any appeal under Section 260-A of the Act in this Court against the order passed in I.T.A. No. 890/Chandi/1993 in respect of assessment year 1990-91 and ITA No. 1330/Chandi/1994 in respect of assessment year 1991-92, decided on 11.5.2001 by the Tribunal in the case of the respondent-assessee. At the resumed hearing today, learned counsel for the revenue has apprised us that no appeal against the order dated 11.5.2001, passed by the Tribunal in I.T.A. No. 890/Chandi/1993 in respect of assessment year 1990-91 and ITA No. 1330/Chandi/1994 in respect of assessment year 1991-92, has been preferred. He has also placed on record a letter dated 30.7.2007 addressed by the Assistant Commissioner of Income-tax, Circle 4(1), Chandigarh, in the said case.

Mr. Garg has further stated that the order, after remand, passed in pursuance to the order under challenge in this reference (order dated 22.9.1992 in ITA No. 1740/Chandi/1991) has been accepted by the revenue. Therefore, we find that to decide the questions of law raised in this reference has been rendered academic. Accordingly, we return the reference unanswered. (M.M. KUMAR) JUDGE (AJAY KUMAR MITTAL) August 7, 2007 JUDGE Pkapoor 3

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