THE COMMISSIONER OF INCOME TAX, vs. SHRI. N.K. ASHRAF,

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ITA/81/2014HC KeralaKLHC01026647201426 February 2019Bench: HONOURABLE MR.JUSTICE K.VINOD CHANDRAN,HONOURABLE MR. JUSTICE ASHOK MENON7 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the present appeals have become infructuous and nothing survives for consideration. This is because the order under Section 263 of the Income Tax Act, 1961, which formed the basis for the subsequent proceedings, had been struck down by the Income Tax Appellate Tribunal. Furthermore, the Revenue had previously filed an appeal before the High Court against the Tribunal's order but subsequently withdrew it based on a litigation policy. As a result, the appeals were rejected. The court did not decide any substantive issues related to the assessment or the Section 263 order itself, as the appeals were disposed of on procedural grounds stemming from the withdrawal of the earlier appeal.

What were the facts?

These four appeals (ITA Nos. 79, 80, 81, and 82 of 2014) were filed by the Commissioner of Income Tax, Calicut, against the respondent, N.K. Ashraf. The appeals arose from orders giving effect to a direction issued under Section 263 of the Income Tax Act, 1961. The original order passed under Section 263 by the Commissioner was previously struck down by the Income Tax Appellate Tribunal (ITAT). The Revenue had filed an appeal before the High Court against the ITAT's order, but this appeal was subsequently withdrawn by the Revenue, citing a litigation policy. Consequently, the present appeals before the High Court have become infructuous.

What were the issues?

1. Whether the appeals filed by the Revenue are maintainable and survive for consideration, given that the underlying order under Section 263 of the Income Tax Act, 1961, was struck down by the Tribunal, and the Revenue's subsequent appeal against the Tribunal's order was withdrawn. Assessee's Contentions: The judgment does not record specific contentions from the assessee's side regarding the issues to be decided. The focus appears to be on the procedural history and the consequence of the Revenue's withdrawal of a prior appeal. Revenue's Contentions: The Revenue, as the appellant, has brought these appeals before the High Court. However, the judgment indicates that the Revenue had previously withdrawn an appeal against the Tribunal's order that had struck down the Section 263 order. The current appeals are a consequence of the orders giving effect to the now-stuck-down Section 263 direction.

Which sections of the Income-tax Act were involved?

Section 263

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 26TH DAY OF FEBRUARY 2019 / 7TH PHALGUNA, 1940 ITA.No. 79 of 2014 AGAINST THE ORDER/JUDGMENT IN ITA 275/2009 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 22-06-2011 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC FOR INCOME TAX RESPONDENT/S: N.K.ASHRAF, KUHIPARI BUILDING, CHEROOTY ROAD, CALICUT- 673 032. BY ADVS. SRI.P.GOPINATH (SR.) SRI.P.BENNY THOMAS SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR OTHER PRESENT: THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 26.02.2019, ALONG WITH ITA.80/2014, ITA.81/2014, ITA.82/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A.Nos.79,80,81&82 of 2014 2 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 26TH DAY OF FEBRUARY 2019 / 7TH PHALGUNA, 1940 ITA.No. 80 of 2014 AGAINST THE ORDER/JUDGMENT IN ITA 276/2009 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 22-06-2011 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC FOR INCOME TAX RESPONDENT/S: N.K. ASHRAF, KUHIPARI BUILDING, CHEROOTY ROAD, CALICUT - 673 032. BY ADVS. SRI.P.GOPINATH (SR.) SRI.P.BENNY THOMAS SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 26.02.2019, ALONG WITH ITA.82/2014, ITA.81/2014, ITA.79/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A.Nos.79,80,81&82 of 2014 3 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 26TH DAY OF FEBRUARY 2019 / 7TH PHALGUNA, 1940 ITA.No. 81 of 2014 AGAINST THE ORDER/JUDGMENT IN ITA 271/2009 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 22-06-2011 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC FOR INCOME TAX RESPONDENT/S: N.K. ASHRAF, KUNHIPARI BUILDING, CHEROOTY ROAD, CALICUT - 673 032. BY ADVS. SRI.P.GOPINATH (SR.) SRI.P.BENNY THOMAS SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 26.02.2019, ALONG WITH ITA.82/2014, ITA.80/2014, ITA.79/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A.Nos.79,80,81&82 of 2014 4 IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT THE HONOURABLE MR.JUSTICE K.VINOD CHANDRAN & THE HONOURABLE MR. JUSTICE ASHOK MENON TUESDAY ,THE 26TH DAY OF FEBRUARY 2019 / 7TH PHALGUNA, 1940 ITA.No. 82 of 2014 AGAINST THE ORDER/JUDGMENT IN ITA 272/2009 of I.T.A.TRIBUNAL,COCHIN BENCH DATED 22-06-2011 APPELLANT/S: THE COMMISSIONER OF INCOME TAX, CALICUT. BY ADVS. SRI.P.K.R.MENON,SR.COUNSEL, GOI(TAXES) SRI.JOSE JOSEPH, SC FOR INCOME TAX RESPONDENT/S: N.K. ASHRAF, KUNHIPARI BUILDING, CHEROOTY ROAD, CALICUT - 673 032. BY ADVS. SRI.P.GOPINATH (SR.) SRI.P.BENNY THOMAS SRI.JOSON MANAVALAN SRI.K.JOHN MATHAI SRI.KURYAN THOMAS SRI.M.GOPIKRISHNAN NAMBIAR THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 26.02.2019, ALONG WITH ITA.81/2014, ITA.80/2014, ITA.79/2014, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

I.T.A.Nos.79,80,81&82 of 2014 5 JUDGMENT [ ITA 79/2014 ,ITA.80/2014 ,ITA.81/2014 ,ITA.82/2014 ] Vinod Chandran, J. The appeals were filed from the order giving effect to a direction issued under Section 263 of the Income Tax Act, 1961. The order under Section 263 itself was stuck down by the Tribunal and against which an appeal was filed before this Court, which was withdrawn by the Revenue, based on the litigation policy. In such circumstances, nothing survives in the above appeals and the same would stand rejected. No costs. Sd/- K.VINOD CHANDRAN JUDGE Sd/- ASHOK MENON dkr JUDGE

I.T.A.Nos.79,80,81&82 of 2014 6 APPENDIX OF ITA 79/2014 APPELLANT'S/S ANNEXURES: ANNEXURE A COPY OF ORDER ASSESSMENT ORDER U/S. 143 R.W.S. 263 DATED 05/12/2008. ANNEXURE B COPY OF THE ITAT'S ORDER SET ASIDE THE ORDER U/S. 263 OF THE I.T. ACT OF THE CIT DATED 30/01/2009. ANNEXURE C ORDER OF THE CIT(A) RESTORING THE ORIGINAL ASSESSMENT ORDER DATED 18/02/2009. ANNEXURE D ORDER OF THE ITAT DISMISSING THE APPEAL OF THE DEPARTMENT DATED 22/06/2011. APPENDIX OF ITA 80/2014 APPELLANT'S/S ANNEXURES: ANNEXURE A COPY OF ORDER ASSESSMENT ORDER U/S. 143 R.W.S. 263 DATED 05/12/2008. ANNEXURE B COPY OF THE ITAT'S ORDER SET ASIDE THE ORDER U/S. 263 OF THE I.T. ACT OF THE CIT DATED 30/01/2009. ANNEXURE C ORDER OF THE CIT(A) RESTORING THE ORIGINAL ASSESSMENT ORDER DATED 18/02/2009. ANNEXURE D ORDER OF THE ITAT DISMISSING THE APPEAL OF THE DEPARTMENT DATED 22/06/2011.

I.T.A.Nos.79,80,81&82 of 2014 7 APPENDIX OF ITA 81/2014 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ORDER ASSESSMENT ORDER U/S. 143 R.W.S. 263 DATED 05/12/2008. ANNEXURE B COPY OF THE ITAT'S ORDER SET ASIDE THE ORDER U/S. 263 OF THE I.T. ACT OF THE CIT DATED 30/01/2009. ANNEXURE C ORDER OF THE CIT(A) RESTORING THE ORIGINAL ASSESSMENT ORDER DATED 18/02/2009. ANNEXURE D ORDER OF THE ITAT DISMISSING THE APPEAL OF THE DEPARTMENT DATED 22/06/2011. APPENDIX OF ITA 82/2014 PETITIONER'S/S EXHIBITS: ANNEXURE A COPY OF ORDER ASSESSMENT ORDER U/S. 143 R.W.S. 263 DATED 05/12/2008. ANNEXURE B COPY OF THE ORDER OF THE TRIBUNAL DATED 30/01/2009. ANNEXURE C ORDER OF THE CIT(A) RESTORING THE ORIGINAL ASSESSMENT ORDER DATED 18/02/2009. ANNEXURE D ORDER OF THE ITAT DISMISSING THE APPEAL OF THE DEPARTMENT DATED 22/06/2011.

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