COMMISSIONER OF INCOME TAX-V vs. KISAN DISCRETIONARY FAMILY TRUST

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TAXAP/132/2012HC GujaratGJHC24022687201216 August 2012Bench: HONOURABLE MR. JUSTICE VIJAY MANOHAR SAHAI,HONOURABLE MR. JUSTICE N.V.ANJARIA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the proposed question raised by the Revenue in its appeal did not involve any substantial question of law. The Court noted that the ITAT had recalled its earlier order, allowed the assessee's miscellaneous application, and directed that grounds 4 and 5 of the appeal would be reheard. The Court found no substantial question of law arising from this procedural direction by the Tribunal. Therefore, the Tax Appeal filed by the Revenue was dismissed. No specific finding was given on the merits of grounds 4 and 5, as the appeal was dismissed on the preliminary issue of substantial question of law.

What were the facts?

The Revenue, Commissioner of Income Tax-V, filed a Tax Appeal before the High Court of Gujarat against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT, by its order dated September 16, 2011, had recalled its earlier order dated January 22, 2010. The earlier order had allowed a miscellaneous application filed by the assessee, Kisan Discretionary Family Trust, and recalled grounds of appeal numbered 4 and 5 for rehearing. The ITAT's subsequent order directed that the appeal would now be heard on grounds 4 and 5. The Revenue challenged this action of the ITAT.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in allowing the miscellaneous application of the assessee, recalling ground Nos. 4 & 5, and directing a fresh adjudication of these grounds to resolve a contradiction pointed out by the assessee? (Question of law and fact, turning on the Tribunal's procedural power to recall its orders and rehear grounds). Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The Revenue argued that the ITAT was not right in allowing the miscellaneous application, recalling the grounds, and directing a fresh adjudication. They contended that the Tribunal's order raised a substantial question of law. The Revenue relied on the substantial question of law as framed in the appeal.

AI-generated summary — verify with the full judgment below

TAXAP/132/2012 1/2 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL No. 132 of 2012 For Approval and Signature: HONOURABLE MR.JUSTICE V. M. SAHAI

HONOURABLE MR.JUSTICE N.V. ANJARIA ========================================================= 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?

========================================================= COMMISSIONER OF INCOME TAX-V Versus KISAN DISCRETIONARY FAMILY TRUST ========================================================= Appearance : MRS MAUNA M BHATT for Appellant(s) : 1, None for Opponent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE V. M. SAHAI and HONOURABLE MR.JUSTICE N.V. ANJARIA Date : 16/08/2012 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE V. M. SAHAI) We   have   heard   Mr.   M.   R.   Bhatt,   learned   senior   standing counsel assisted by Mrs. Mauna Bhatt, learned counsel appearing

TAXAP/132/2012 2/2 JUDGMENT for the Revenue. 2.0 This tax appeal has been filed on the following substantial question of law. “Whether the Appellate Tribunal is right in law and on facts   in   allowing   the   MA   of   the   assessee,   recalling ground Nos.4 & 5 and thereupon directing to fix the appeal for readjudicating the said ground Nos. 4 & 5 a fresh so as to resolve the contradiction pointed out by the assessee?” 3.0 By   the   impugned   order   dated   16th  September   2011,   the Tribunal has recalled its earlier order dated 22nd January 2010 by which the miscellaneous application was allowed and ground nos.4 and 5 were recalled for rehearing. Now the matter will be heard by the Tribunal also on ground nos.4 and 5. 4.0 In this view of the matter, we do not find that the proposed question raised by the Revenue in this appeal raises any substantial question of law. This tax appeal is accordingly dismissed. [V. M. SAHAI, J.] [N. V. ANJARIA, J.] Amit

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