C I T vs. MONICA THAPAR

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ITA/540/2008HC Punjab & HaryanaPHHC01080543200818 May 2012Bench: MR. JUSTICE GURMEET SINGH SANDHAWALIA3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that both parties agreed that the issues in the present appeal were concluded by the High Court's own decision in ITA No. 155 of 2008, Commissioner of Income Tax-I, Ludhiana vs. Shri Prem Pal Prop., dated December 14, 2010. In that prior decision, the High Court had held that proceedings initiated under Section 148 of the Act were valid. Consequently, the High Court allowed the revenue's appeal in ITA No. 155 of 2008, set aside the impugned orders, and remanded the matter to the Tribunal for a fresh decision in accordance with law. Applying this precedent, the High Court disposed of the present appeal in the same terms. The operative direction is that the matter is remanded to the ITAT for a fresh decision in accordance with law. The specific findings on the individual questions of law as framed in the appeal are not detailed in this judgment, as the decision rests on the binding precedent.

What were the facts?

The Revenue, Commissioner of Income Tax-III, Ludhiana, has filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order of the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'B', dated January 18, 2008. The appeal pertains to assessment year 1998-99 and concerns the assessee, Smt. Monica Thapar. The core of the dispute revolves around the validity of a notice issued under Section 148 and the taxability of jewellery declared under the Voluntary Disclosure Income Scheme (VDIS). The amount in dispute is Rs. 21,47,176/-, which was added by the Assessing Officer (AO) under Section 69A. The ITAT had previously deleted this addition. The High Court notes that the parties have agreed that the issues are concluded by a prior decision of the High Court in ITA No. 155 of 2008.

What were the issues?

The High Court was asked to decide the following substantial questions of law: 1. Whether the ITAT was correct in holding the issuance of notice under Section 148 for AY 1998-99 to be invalid? 2. Whether, in view of Section 69A, the ITAT was right in holding that jewellery declared in VDIS was not assessable in AY 1998-99? 3. Whether the ITAT was correct in deleting the addition of Rs. 21,47,176/- made by the AO under Section 69A? 4. Whether assets disclosed under VDIS could be assessed in the year of declaration if tax on them was not paid? The assessee's contentions are not explicitly recorded. The revenue argued that the ITAT's decision regarding the invalidity of the Section 148 notice and the non-assessability of VDIS jewellery was incorrect. The revenue relied on the express provisions of Section 69A. The High Court notes that the assessee's counsel before the Tribunal had relied on an earlier ITAT decision in Shri Prem Pal vs. ITO, ITA No. 257/Chandi/03, against which the revenue had filed ITA No. 155 of 2008.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 148,Section 69A

AI-generated summary — verify with the full judgment below

ITA No. 540 of 2008 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No. 540 of 2008 DATE OF DECISION: May 18, 2012 The Commissioner of Income Tax-III, Ludhiana .........APPELLANT(S)

VERSUS

Smt. Monica Thapar

......RESPONDENT(S) CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE G.S. SANDHAWALIA Present: Mr. Rajesh Katoch, Advocate, for the appellant. Mr. Rajiv Sharma, Advocate, for the respondent. AJAY KUMAR MITTAL, J. (ORAL) 1. The revenue has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (in short 'The Act') against the order of the Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh (in short 'ITAT') passed in ITA/58/CHANDI/2007 dated 18.01.2008 for the assessment year 1998-99. 2. The revenue has claimed the following substantial questions of law:- “1.Whether on the facts and in the circumstances of the case, the ITAT was correct in law in holding the issuance of notice u/s 148 for the Asstt. Year 1998-

ITA No. 540 of 2008 2 99 to be invalid? 2. Whether in view of the express provisions of Section 69 A of the Act, the Hon'ble ITAT was right in holding that the jewellery declared in VDIS was not assessable in A.Y.1998-99? 3. Whether on the facts and in the circumstances of the case, the ITAT was correct in law in deleting the addition of Rs. 21,47,176/- made by the AO u/s 69A of the Act? 4. Whether or not the assets disclosed by the Respondent under the VDIS could be assessed in the year of declaration if the tax on the declared assets was not paid?” 3. Learned counsel for the parties are agreed that the issue raised herein stands concluded by decision of this Court in ITA No. 155 of 2008, Commissioner of Income Tax-I, Ludhiana vs. Shri Prem Pal Prop. dated 14.12.2010. It is further not disputed that the learned counsel for the assessee in the present case before the Tribunal had relied upon the earlier decision of the Tribunal passed in the case of Shri Prem Pal vs. ITO, ITA No. 257/Chandi/03 against which ITA No. 155 of 2008 was preferred by the revenue. This Court in ITA No. 155 of 2008, while deciding the issues, held that the proceedings initiated under Section 148 of the Act were valid and after allowing the appeals and setting aside the impugned orders, the matter was remanded to the Tribunal for fresh decision in accordance with law. 4. In view of the above, the appeal stands disposed of in the same

ITA No. 540 of 2008 3 terms and the matter is remanded to the Tribunal for fresh decision in accordance with law. (Ajay Kumar Mittal)

Judge 18.05.2012

(G.S. Sandhawalia) shivani

Judge

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