PR. COMMISSIONER OF INCOME TAX vs. M/S C.K. MOTORS

ITA/11/2023HC RajasthanRJHC01050657202311 March 2024Bench: MANINDRA MOHAN SHRIVASTAVA,MUNNURI LAXMAN2 pages

AI SummaryWithdrawn

What did the High Court hold?

The High Court, without commenting on the merits of the case, allowed the Revenue to revive its appeal in exercise of the liberty granted by the ITAT. The Court noted that the ITAT's order explicitly stated that the Revenue would be at liberty to approach the Tribunal for re-institution of the appeal if requisite material was brought to show that the appeal was protected by the exceptions in paragraph 10 of the circular dated July 11, 2018. The Court acknowledged the Revenue's submission that the ITAT had made observations on merits and that the issue of the amendment's applicability was not considered. The appeal was accordingly dismissed as withdrawn with the liberty granted to the Revenue to revive it. The Revenue was also granted liberty to seek exclusion of the period of pendency of this appeal for limitation purposes.

What were the facts?

The Principal Commissioner of Income Tax, Udaipur (Revenue) filed an appeal before the Rajasthan High Court at Jodhpur against an order of the Income Tax Appellate Tribunal (ITAT). The ITAT had granted liberty to the Revenue to revive its appeal if it could provide material showing that the case was protected by exceptions prescribed in paragraph 10 of a circular dated July 11, 2018. The Revenue's counsel submitted that while liberty was granted, the ITAT also made observations on merits. The Revenue sought liberty to raise all grounds, including the applicability of an amendment effective from April 1, 2013, which it claimed did not receive consideration.

What were the issues?

1. Whether the ITAT erred in granting liberty to the Revenue to revive its appeal based on specific conditions, while also making observations on merits, thereby potentially prejudicing the Revenue's case? 2. Whether the Revenue should be granted liberty to raise all grounds of appeal, including the issue of the applicability of the amendment effective from April 1, 2013, which was allegedly not considered by the ITAT? Assessee's Contentions: The judgment does not record any contentions from the assessee, M/s C.K. Motors. Revenue's Contentions: The Revenue argued that the ITAT, despite granting liberty to revive the appeal under certain conditions, proceeded to record observations on merits. The Revenue also contended that the issue of the applicability of the amendment effective from April 1, 2013, did not receive consideration and sought liberty to raise all grounds.

AI-generated summary — verify with the full judgment below

[2024:RJ-JD:11784-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. Income Tax Appeal No. 11/2023 Pr. Commissioner Of Income Tax, Pr.commissioner Of Income Tax Udaipur ----Appellant Versus M/s C.k. Motors, M/s C.k. Motors 10A Old Industrial Area Chittorgar ----Respondent For Appellant(s) : Mr. K.K. Bissa For Respondent(s) : --- HON'BLE THE CHIEF JUSTICE MR. MANINDRA MOHAN SHRIVASTAVA HON'BLE MR. JUSTICE MUNNURI LAXMAN Order 11/03/2024 1. Though number of questions of law have been proposed for consideration of this Court in this appeal filed by the Revenue, we find that the learned Tribunal has granted liberty to the Revenue to revive its appeal, if requisite material is brought to show that the appeal is protected by the exceptions prescribed in para 10 of the circular dated 11.07.2018. Para 2.4 of the order impugned reads as under: “2.4 Before parting, we clarify here that the Revenue shall be at liberty to approach the Tribunal for re- institution of appeal, if the requisite material is brought to show that the appeal is protected by the exceptions prescribed in para 10 of the Circular dated 11.07.2018.” 2. Learned counsel for the Revenue also submitted that though liberty has been granted and Revenue could re-institute its appeal

[2024:RJ-JD:11784-DB] (2 of 2) [ITA-11/2023] and satisfy the Tribunal that there are material to establish that the case of the Revenue is covered under exceptions prescribed in para 10 of the circular dated 11.07.2018, the Tribunal has proceeded to record certain observations in the order on merits as well. 3. We are of the view that the Tribunal, having granted liberty to the Revenue to revive its appeal on conditions stated in para 2.4 of the order, has proceeded to record certain observations. Learned counsel for the Revenue pointed out to this Court that the issue of applicability of amendment w.e.f. 01.04.2013 did not receive any consideration and Revenue may be granted liberty to raise all the grounds. 4. Without commenting upon the merits of the case, in view of what has been stated by the Tribunal in para 2.4 of the order, we allow the Revenue to revive its appeal in exercise of liberty granted to it by the learned Tribunal. 5. The appeal is accordingly dismissed as withdrawn with the aforesaid liberty. 6. The Revenue would be at liberty to seek exclusion of the period of pendency of this appeal for the purpose of counting limitation. (MUNNURI LAXMAN),J (MANINDRA MOHAN SHRIVASTAVA),CJ 9-jayesh/-

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