Principal Commissioner Of Income Tax Ii vs. M/S Sundarlal Moolchand Jain Tobacconist Pvt. Ltd.

ITA/134/2016HC Madhya Pradesh16 April 2018Bench: HON'BLE SHRI JUSTICE P.K. JAISWAL1 pages

For Petitioner: Veena Mandlik

AI SummaryDismissed

What did the High Court hold?

The High Court held that since the reassessment proceedings have been completed by the Assessing Officer pursuant to the ITAT's remand direction, the present appeal filed by the Department of Revenue challenging the remand order has become infructuous. The Court reasoned that there is no further order required in the appeal as the substantive proceedings have concluded. Therefore, the appeal was dismissed as rendered infructuous. The specific findings of the ITAT on the original dispute regarding undervalued stock are not detailed as the appeal was disposed of on a procedural ground.

What were the facts?

The Principal Commissioner of Income Tax-II (the appellant/Department of Revenue) filed an appeal challenging an order dated 02.05.2016 passed by the Income Tax Appellate Tribunal (ITAT) in ITA No.106/Ind/2016 and ITA No.107/Ind/2016. The ITAT had remanded the matter to the Assessing Officer (AO) to verify if undervalued stock held by the assessees was sold during the assessment year and if the sale proceeds were recorded in their books of account. The High Court granted time to the appellant's counsel to ascertain the status of the proceedings before the AO. On the subsequent date, the counsel informed the Court that the Assistant Commissioner of Income Tax, Circle-5(1), Indore, had passed an order on 05.05.2017, completing the reassessment.

What were the issues?

1. Whether the High Court should proceed with the appeal when the underlying reassessment proceedings, which were the subject of the ITAT's remand order, have been completed by the Assessing Officer. The appellant (Department of Revenue) argued that since the reassessment has been completed, the present appeal challenging the remand order has become infructuous. The respondent (assessee) did not record any arguments in the judgment.

AI-generated summary — verify with the full judgment below

HIGH COURT OF MADHYA PRADESH BENCH AT INDORE. I.T.A.No.134/2016 (Pr. Commissioner of Income Tax-II V/s. M/s. Sundarlal Moolchand Jain) 2 Indore, Dt.16.04.2018 Ms. Veena Mandlik, learned counsel for the appellant. In this appeal the appellant/Department of Revenue has challenged the order dated 02.05.2016 passed in ITA No.106/Ind/2016 and ITA No.107/Ind/2016, by which learned Tribunal remanded the matter to the Assessing Officer to verify whether undervalued stock available with the assessees were sold during the year under consideration and sale proceeds have been recorded in the books of account. In pursuance to the direction made by the Income Tax Appellate Tribunal, Indore, we granted time to the learned counsel to verify whether the matter is still pending before the Assessing Officer or not? Today she has drawn our attention to the order passed by the Assessing Officer on 05.05.2017 and submitted that the matter has been decided by the Assistant Commissioner of Income Tax, Circle-5(1), Indore. Considering the fact that reassessment has been completed, no further order in the present Appeal is required. In view of the aforesaid, the present Appeal is rendered infructuous. Accordingly, the same is hereby dismissed as rendered infructuous. C.C. as per rules. (P.K. Jaiswal) (S.K.Awasthi) Judge Judge ns Digitally signed by Neeraj Sarvate Date: 2018.04.17 11:41:12 +05'30'

Recent GST High Court judgments

Search GST case law →