CIT vs. GREEN WORLD CORPORATION

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ITA/1277/2010HC DelhiDLHC01111038201005 April 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no question of law arises in these two appeals. The Court found no infirmity in the impugned orders of the ITAT. The ITAT's decision to quash the reassessment proceedings under Section 147/148, holding them to be without jurisdiction, was upheld. The reasoning is that this issue was already covered by a previous decision in the assessee's own case for AY 2003-04. Similarly, the ITAT's decision regarding the Section 263 proceedings, which were initiated in the context of abortive reassessment proceedings, was also upheld as being covered by another prior ruling. Consequently, both appeals filed by the Revenue were dismissed.

What were the facts?

These two appeals by the Revenue (CIT) against the Income Tax Appellate Tribunal (ITAT) concern Assessment Year (AY) 2002-03. The ITAT had quashed orders of the CIT(A). The reassessment proceedings under Section 147/148 of the Income Tax Act, initiated on the directions of the Commissioner, were held to be without jurisdiction by the ITAT, which set aside the Revenue Authorities' orders. This issue was previously decided in favour of the assessee for AY 2003-04. The second appeal challenges an assessment made pursuant to proceedings under Section 263 of the Act, initiated by the Commissioner in the context of abortive reassessment proceedings. This aspect is also covered by a prior ruling concerning the assessee.

What were the issues?

1. Whether the reassessment proceedings initiated under Section 147/148 of the Income Tax Act were without jurisdiction, and consequently, whether the ITAT correctly set aside the orders of the Revenue Authorities? The Revenue's contention is not recorded. The assessee's position, as implied by the ITAT's decision, is that the reassessment proceedings lacked jurisdiction. This issue is stated to be covered by a prior ruling for AY 2003-04. 2. Whether the Commissioner correctly invoked its power under Section 263 of the Act in the context of abortive reassessment proceedings? The Revenue's contention is not recorded. The assessee's position, as implied by the ITAT's decision, is that the Section 263 proceedings were not validly initiated or sustained. This issue is stated to be covered by another prior ruling.

Which sections of the Income-tax Act were involved?

Section 147,Section 148,Section 263

AI-generated summary — verify with the full judgment below

$~18-19 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 1277/2010 CIT

..... Appellant

Through Mr. Ruchir Bhatia, Adv.

versus

GREEN WORLD CORPORATION

..... Respondent

Through Mr. Deepak Vohra, Adv.

ITA 1908/2010

CIT

..... Appellant

Through Mr. Ruchir Bhatia, Adv.

versus

THE GREEN WORLD CORPORATION

..... Respondent

Through Mr. Deepak Vohra, Adv.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

05.04.2018

No question of law has been framed in these two appeals. Both relate to AY 2002-03. The Income Tax Appellate Tribunal (ITAT) by separate orders-impugned by the Revenue quashed the orders of the CIT(A). On the directions of the Commissioner of Income Tax, reassessment under Section 147/148 of the Income Tax Act (the ‘Act’) was initiated. Ultimately, the reassessment proceedings were held to be without jurisdiction and the ITAT set aside the orders of

the Revenue Authorities. This issue stands covered in the case of the assessee for AY 2003-04 in ITA 1624/2010 (Commissioner of Income Tax vs. Green World Corporation).

The other order impugned in the second appeal pertains to the assessment pursuant to the proceedings under Section 263 of the Act initiated by the Commissioner. The facts are that the Commissioner sought to invoke its power in the context of abortive reassessment proceedings. This aspect too is covered by another ruling in ITA 734/2011 (Commissioner of Income Tax vs. Green World Corporation).

In view of the above discussion, it is held that there is no infirmity in the impugned orders of the ITAT. No question of law arises in these two appeals. Both are accordingly dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J APRIL 05, 2018 rc

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