PRINCIPAL COMMISSIONER INCOME TAX SURAT-1 vs. M/S. DIVINE LIGHT FINANCE LTD.

PDF · subscribers
TAXAP/166/2020HC GujaratGJHC24034759202010 September 2020Bench: HONOURABLE THE CHIEF JUSTICE MR. JUSTICE VIKRAM NATH,HONOURABLE MR. JUSTICE J.B.PARDIWALA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Gujarat declined to entertain the tax appeal on the ground of territorial jurisdiction. The Court noted that the impugned order was passed by the ITAT, Kolkata. Therefore, the appeal should have been filed before the appropriate forum with territorial jurisdiction. The Court explicitly stated that it was not going into the merits of the questions of law raised by the Revenue. The appeal was dismissed solely on the basis of maintainability. No finding was given on the substantive issues raised by the Revenue regarding jurisdiction and Section 292BB of the Act.

What were the facts?

The Revenue, Principal Commissioner of Income Tax, Surat-1, filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated February 19, 2019, passed by the Income Tax Appellate Tribunal (ITAT), Kolkata. The appeal pertains to Assessment Year 2014-15 and concerns the quashing of an assessment order. The assessee is M/s. Divine Light Finance Ltd. The High Court of Gujarat at Ahmedabad was hearing the appeal. The Revenue proposed specific questions of law for consideration.

What were the issues?

1. Whether, in law, the Hon'ble Tribunal erred in quashing the assessment order, ignoring the established legal position that the assessee had not challenged the jurisdiction either before the Assessing Officer or the CIT(A), thereby submitting to the jurisdiction and in view of Section 292BB of the Act, the assessment order holds good? (Question of law) 2. Whether, in law, the Hon'ble Tribunal was not lawfully justified in quashing the assessment order on a presumed lack of jurisdiction, ignoring that the assessee is not entitled to question the jurisdiction of the Assessing Officer after the time limit specified in Section 124(3) of the Income Tax Act and in view of Section 292BB of the Act? (Question of law) Assessee's arguments: Not recorded in the judgment. Revenue's arguments: The Revenue contended that the assessee had submitted to the jurisdiction of the Assessing Officer and CIT(A) by not challenging it earlier. They relied on Section 292BB of the Act, which presumes jurisdiction if the assessee has participated in assessment proceedings. They also argued that the assessee was barred from questioning the Assessing Officer's jurisdiction after the time limit specified in Section 124(3) of the Act. The Revenue cited (2014) 44 Taxmann.com 101 [All] and [2018] 94 Taxmann.com 249 (Mad.) as precedents.

Which sections of the Income-tax Act were involved?

Section 260A,Section 292BB,Section 124(3)

AI-generated summary — verify with the full judgment below

C/TAXAP/166/2020 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 166 of 2020 ========================================================== PRINCIPAL COMMISSIONER INCOME TAX SURAT-1 Versus M/S. DIVINE LIGHT FINANCE LTD. ========================================================== Appearance: MRS KALPANAK RAVAL(1046) for the Appellant(s) No. 1 for the Opponent(s) No. 1 ========================================================== CORAM: HONOURABLE THE CHIEF JUSTICE MR. VIKRAM NATH and HONOURABLE MR. JUSTICE J.B.PARDIWALA

Date : 10/09/2020

ORAL ORDER (PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) 1. This appeal under Section 260A of the Income Tax Act, 1961 (for short “the Act, 1961”) is at the instance of the Revenue and is directed against the order passed by the Income Tax Appellate Tribunal, Kolkata dated 19th February, 2019 in the ITA No.1591/Kol/2019 for the A.Y. 2014-15. The Revenue has proposed the following questions of law for the consideration of this Court; "(i) That in the circumstances of the case and in law, the Hon'ble Tribunal committed error of law in quashing the assessment order ignoring the established legal position that assessee has not challenged the jurisdiction either before the Assessing Officer or the Ld. CIT (A) and thus having submitted to the jurisdiction and w.r.t Sec. 292BB of the Act, the assessment Order holds (2014) 44 Taxmann.com 101[All], [2018] 94 taxmann.com 249 (Mad.) (ii) That in the circumstances of the case and in law, Page 1 of 2

C/TAXAP/166/2020 ORDER the Hon'ble Tribunal is not lawfully justified in quashing the assessment order on presumed lack of jurisdiction, ignoring that the assessee is not entitled to call in question the jurisdiction of Assessing Officer after the time limit specified in section 124(3) of Income Tax Act and in view of Sec.292BB of the Act?" 2. We take notice of the fact that the order impugned in this appeal has been passed by the Income Tax Appellate Tribunal of Kolkata. In such circumstances, we decline to entertain this tax appeal on the ground of territorial jurisdiction. It shall be open for the Revenue to avail appropriate legal remedy before the appropriate forum in accordance with law. 3. We dismiss this tax appeal with the aforesaid observations only on the ground of its maintainability without going into the merits of the questions of law raised by the Revenue. (VIKRAM NATH, CJ) (J. B. PARDIWALA, J) Vahid Page 2 of 2

More judgments on Section 292BB

All 676 judgments and leading authorities on Section 292BB →

Recent GST High Court judgments

Search GST case law →