I.T.O vs. BARODA CRICKET ASSOCAITION

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TAXAP/1035/2006HC GujaratGJHC24038012200625 November 2014Bench: HONOURABLE MR. JUSTICE KS JHAVERI,HONOURABLE MR. JUSTICE K.J.THAKER3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, while admitting the Tax Appeals and framing a substantial question of law, ultimately disposed of the appeals without deciding the merits. The Court noted that in view of its earlier decision in a batch of related Tax Appeals (Nos. 1020 of 2006 to 1026 of 2006 & Tax Appeal Nos. 1028 of 2006), the present appeals would not survive. These related matters were remitted back to the Commissioner of Income Tax (Appeals) for decision on the question of interest. Consequently, the present Tax Appeals were disposed of in light of this factual matrix, indicating a procedural disposition rather than a decision on the substantial question of law. No specific finding was reached on the entitlement to charge interest under Section 234.

What were the facts?

The appellant-Revenue has filed six Tax Appeals challenging a common judgment and order dated March 23, 2005, passed by the Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench 'A'. These appeals pertain to assessment years 1991-92 through 1996-97. The core of the dispute revolves around the ITAT's decision regarding the Revenue's entitlement to charge interest under Section 234 of the Income Tax Act for late filing of returns, following the quashing and setting aside of the original assessment orders for all relevant assessment years. The High Court, while admitting these appeals, framed a substantial question of law concerning the ITAT's correctness in this regard.

What were the issues?

1. Whether the Hon’ble ITAT was right in law and on facts in holding that in light of the quashing and setting aside of the original assessment order in all assessment years, the Revenue is not entitled to charge interest under Section 234 of the Income Tax Act for late filing of return? Assessee's contentions: The judgment does not record any specific contentions made by the assessee (Baroda Cricket Association) in these Tax Appeals before the High Court. However, the ITAT's decision, which is under challenge, implies that the assessee likely argued that no interest under Section 234 could be levied when the original assessment orders were set aside. Revenue's contentions: The appellant-Revenue argued that the ITAT erred in holding that they were not entitled to charge interest under Section 234 of the Income Tax Act for late filing of returns, given that the original assessment orders were quashed and set aside.

Which sections of the Income-tax Act were involved?

Section 234

AI-generated summary — verify with the full judgment below

O/TAXAP/1027/2006 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1027 of 2006 With TAX APPEAL NO. 1029 of 2006 With TAX APPEAL NO. 1032 of 2006 With TAX APPEAL NO. 1033 of 2006 With TAX APPEAL NO. 1034 of 2006 With TAX APPEAL NO. 1035 of 2006

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 ? ================================================================ I.T.O....Appellant(s) Versus Page 1 of 3

O/TAXAP/1027/2006 JUDGMENT BARODA CRICKET ASSOCAITION....Opponent(s) ================================================================ Appearance: MR KM PARIKH, ADVOCATE for the Appellant(s) No. 1 MR MANISH J SHAH, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER

Date : 25/11/2014

ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of all these Tax Appeals, the appellant-Revenue has challenged the common judgment and order dated 23.3.2005 passed by the Income Tax Appellate Tribunal, Ahmedabad Bench ‘A’ in ITA No. 72/Ahd/2005 for AY 1995-96, ITA No. 73/Ahd/2005 for AY 1996-97, ITA No. 69/Ahd/2005 for AY 1992-93, ITA No. 68/Ahd/2005 for AY 1991-92, ITA No. 70/Ahd/2005 for AY 1993- 94 and ITA No. 71/Ahd/2005 for AY 1994-95. 2. While admitting all these Tax Appeal, this Court has framed the following substantial question of law: “Whether the Hon’ble ITAT was right in law and on facts in holding that in light of quashing and setting aside the original assessment order in all Page 2 of 3

O/TAXAP/1027/2006 JUDGMENT assessment years, revenue is not entitled to charge interest u/s. 234 of the IT Act for late filing of return ?” 3. Heard the learned advocate appearing for the parties and considered the submissions made. In view of the decision of this Court in Tax Appeals Nos. 1020 of 2006 to 1026 of 2006 & Tax Appeal Nos. 1028 of 2006, all these Tax Appeals would not survive and the question will be considered after the CIT(A) decides the question in the above matters which are remitted back to CIT(A) by this Court. In view of this factual matrix, these Tax Appeals are disposed of accordingly. (K.S.JHAVERI, J.) (K.J.THAKER, J) mandora Page 3 of 3

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