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ITA - 1907 / 2010HC Delhi02 December 20102 pages
For Petitioner: VINAY VAISH
AI SummaryWithdrawn

What did the High Court hold?

The Tribunal noted that ITA Nos. 1905, 1906, and 1907 of 2010 were filed by the assessee as cross-appeals against the common order. The assessee's counsel stated that these appeals would not be pressed if the ITAT's order on merits in ITA No. 1100 of 2010 (filed by the Revenue) was ultimately sustained in favor of the assessee. The Tribunal granted liberty to the assessee to raise the issues concerning the validity of Section 147 proceedings in the Revenue's appeal (ITA No. 1100 of 2010). Therefore, these appeals were disposed of without a decision on their merits, with the direction that their files be tagged along with ITA No. 1100 of 2010. The finding on the Section 72A exemption and the validity of Section 147 proceedings would be addressed in ITA No. 1100 of 2010.

What were the facts?

The assessee claimed exemption under Section 72A of the Income Tax Act, which the ITAT allowed from April 1, 1997. The Revenue, aggrieved by this, filed ITA No. 1100 of 2010. Concurrently, the Assessing Officer issued notices under Section 147 to reopen assessments for certain years, which the assessee challenged. The ITAT upheld the validity of these Section 147 proceedings. The assessee filed ITA Nos. 1905, 1906, and 1907 of 2010 challenging the ITAT's decision on the Section 147 proceedings. These appeals were filed as cross-appeals to ITA No. 1100 of 2010.

What were the issues?

1. Whether the Income Tax Appellate Tribunal (ITAT) erred in allowing exemption under Section 72A of the Income Tax Act from April 1, 1997, as contended by the Revenue in ITA No. 1100 of 2010. 2. Whether the ITAT erred in upholding the validity of notices issued under Section 147 of the Income Tax Act for reopening assessments, as challenged by the assessee in ITA Nos. 1905, 1906, and 1907 of 2010. Assessee's Contentions (for ITA Nos. 1905, 1906, 1907 of 2010): The assessee argued that these appeals were filed as cross-appeals. The learned counsel stated that if the ITAT's order on merits in ITA No. 1100 of 2010 is sustained in favor of the assessee, these appeals would not be pressed. The assessee reserved the right to challenge the decision on Section 147 proceedings in the Revenue's appeal (ITA No. 1100 of 2010). Revenue's Contentions (for ITA No. 1100 of 2010): The Revenue contended that the ITAT erred in allowing exemption under Section 72A from April 1, 1997. No specific contentions for the Revenue regarding the Section 147 proceedings were recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 72A,Section 147

AI-generated summary — verify with the full judgment below

f ,/' / ./ ,/ // .//// ,./ o/o O2,L2.2OLO //' Present: Ms. Mr, #4L to 43 Prem Lata Bansal, Advocate for the Revenue. Somnath Shukla, Adv. for the assessee. (Common Ordersl +lTA Nos.19O5, 19O6, 19O7l201O * The Department has filed ITA No.1100 of 2010 challenging the order dated 19.06.2009 passed by the Income Tax Appellate Tribunal. The respondent-assessee herein had claimed exemption under Section 72A of the lncome Tax Act, which has been allowed by the ITAT giving the exemption with effect from 01.04.1997. The Department is aggrieved by this part of the order and ITA No.1100/2010 is filed for that purpose, which is pending adjudication. The Assessing Officer had also issued notices under Section 147 of. the Act reopening the assessment proceedings in respect of certain assessment years. The assessee had challenged the validity of those orders. By the same judgment, this challenge of the assessee has been turned down. It is that aspect of the order, urhich is challenged by the assessee by means of these appeals. When these appeals came up for hearing on 30.11.2010 and were listed along with ITA No.1100 of 2010, it was stated by Mr. Ajay Vohra, learned counsel for the assessee that these appeals are filed as cross appeals. He fairly stated that in case the order of the ITAT on merits is ultimately sustained in favour of the assessee, he would not press these appeals. Even otherwise, in the I; ? I{ 2010:DHC:11316-DB

e appeal preferred by the Department, it is always open to the respondent to challenge the decision of the ITAT whereby proceedings under Section 147 of the Act are upheld. Giving this liberty to the assessee to raise these issues in ITA No.1100 of 2Oi:O, we dispose of these appeals. However, files of these appeals shall be tagged along with ITA No.1100'of 2010. suREsH KAIT, J. DECEMBER 02, 2OI.O pmc ? o "v1\ 2010:DHC:11316-DB

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