M/S.SKYLINE BUILDERS, KOCHI-35 vs. THE COMMNR. OF INCOME TAX, KOCHI

ITA/1606/2009HC KeralaKLHC01026367200926 August 2016Author: HONOURABLE MR.JUSTICE ANTONY DOMINIC6 pages
AI SummaryRemanded

What were the facts?

The assessee, M/s. Skyline Builders, engaged in constructing residential flats, filed a return for AY 2002-03 showing an income of Rs. 58,79,863. After a survey, a revised return was filed showing Rs. 46,91,241. The Assessing Officer rejected the books of accounts and completed the assessment at Rs. 1,48,57,690 on March 29, 2005. The CIT(Appeals) allowed the assessee's appeal. The Revenue appealed to the ITAT, which, by an order dated March 12, 2009, restored the assessment order. During the pendency of the Revenue's appeal before the ITAT, a search under Section 132 was conducted on January 24, 2006, leading to a notice under Section 153A. An assessment under Section 153A r.w. 143(3) was completed on December 28, 2007, at Rs. 51,86,410. This subsequent development was not brought to the ITAT's notice.

What did the High Court hold?

The High Court held that the ITAT's order needed to be set aside and the matter remitted for fresh consideration. The Court noted that a search under Section 132 was conducted and an assessment under Section 153A was completed while the Revenue's appeal was pending before the Tribunal. Crucially, these developments were not brought to the Tribunal's notice, nor did the Tribunal consider their impact, particularly the implications of Section 153A on the proceedings. The Court found that the non-consideration of these subsequent events and the impact of Section 153A warranted a remand. The Tribunal's order was set aside, and the appeal was restored to its file for fresh consideration after giving notice to the parties and in accordance with the law. The Court did not decide the merits of the original assessment or the CIT(Appeals)'s order.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law and fact in adjudicating the appeal filed by the revenue instead of dismissing it being infructuous? (Question of law and fact, concerning the impact of subsequent events on pending appeals). 2. Whether, on the facts and in the circumstances of the case, the Tribunal is correct in law and fact in reversing the order of the Commissioner of Income Tax (Appeals)? (Question of law and fact, concerning the merits of the assessment). Assessee's contentions: The assessee argued that the appeal before the Tribunal had become infructuous due to the subsequent assessment under Section 153A. The Tribunal failed to consider this development and the impact of Section 153A on the proceedings. Revenue's contentions: The judgment does not record specific contentions made by the Revenue regarding the issues framed by the assessee.

Which sections of the Income-tax Act were involved?

Section 132,Section 153A,Section 143(3)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE SMT. JUSTICE P.V.ASHA FRIDAY, THE 26TH DAY OF AUGUST 2016/4TH BHADRA, 1938 -------------------- ITA 1162/2005 OF INCOME TAX APPELLATE TRIBUNAL, COCHIN BENCH DATED 12-03-2009 ---------- APPELLANT(S)/RESPONDENT: ---------------------- M/S.SKYLINE BUILDERS, KOCHI-35. BY ADVS.SRI.P.BALAKRISHNAN (E) SRI.K.C.KIRAN SRI.MOHAN PULIKKAL RESPONDENT(S)/APPELLANT: ----------------------- THE COMMISSIONER OF INCOME TAX, KOCHI.

BY ADV. SRI.P.K.R. MENON (SR) THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 26-08-2016, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING: PJ -------------------- APPENDIX PETITIONERS' ANNEXURES ---------------------- ANNEXURE A: COPY OF THE ASST.ORDER DATED 29/3/2005 ISSUED U/S.143(3) ANNEXURE B: COPY OF THE ORDER DATED 25/8/05 OF THE COMMISSIONER OF INCOME TAX (APPEALS) ANNEXURE C: COPY OF ORDER DATED 12/3/2009 OF THE INCOME TAX APPELLATE TRIBUNAL ANNEXURE D: COPY OF THE ASST.ORDER DATED 28/12/2007 ISSUED U/S 153A R.W.143(3). RESPONDENTS' ANNEXURE --------------------

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