THE C.I.T vs. M/S SWARAJ MAZDA LTD.CHD.

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ITR/316/1995HC Punjab & HaryanaPHHC01032384199507 August 2007Author: MR. JUSTICE M.M. KUMAR,MR. JUSTICE AJAY KUMAR MITTAL3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the revenue's counsel had confirmed that no appeals were filed against subsequent orders of the ITAT concerning the respondent-assessee 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 present reference. Consequently, the High Court found that the questions of law raised in the reference had become academic. Therefore, the Court returned the reference unanswered, without deciding the merits of the questions posed. No specific finding was given on either of the two questions, nor was any ratio decidendi established. The operative direction was to return the reference unanswered.

What were the facts?

The Commissioner of Income-tax (CIT), Patiala, has referred two questions of law to the High Court of Punjab and Haryana at Chandigarh concerning the assessment year 1990-91. These questions arise from an order dated September 22, 1992, passed by the Income Tax Appellate Tribunal (ITAT) in ITA No. 1741/Chandi/1991. The ITAT's order had remanded the matter back to the CIT (Appeals) for a fresh decision. During the hearing, the revenue's counsel sought an adjournment to ascertain if appeals had been filed against subsequent ITAT orders for assessment years 1990-91 and 1991-92. Upon resumption, the revenue confirmed no appeals were filed against those subsequent orders and also stated that the order passed after the remand by the ITAT (which is the subject of the current reference) has been accepted by the revenue.

What were the issues?

The High Court was asked to decide the following questions of law at the instance of the revenue: 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? This question concerns the propriety of the ITAT's decision to remand the case for a fresh adjudication based on a prior ITAT ruling. 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? This question pertains to the applicability of Section 154(1)(b) for rectification when the assessee failed to furnish requisite evidence for deductions/exemptions under Section 43B. The revenue contended that the ITAT was not right in remanding the case and in holding that rectification was possible under Section 154(1)(b) in the given circumstances. The assessee's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 256,Section 154,Section 43B

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. 1741/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 the matter 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. In this regard, he has placed on record a letter dated 30.7.2007 addressed by the Assistant Commissioner of Income-tax, Circle 4(1), Chandigarh (Mark-‘A’).

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. 1741/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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