PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S TIRUPATI CONSTRUCTION

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ITA/42/2017HC Madhya PradeshMPHC02001181201706 December 20172 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the present appeal filed by the revenue had no merit and did not raise any substantial question of law. This conclusion was based on the fact that the revenue's earlier appeal (ITA No.14/2016) challenging the Tribunal's order dated 30.09.2015 (which had set aside the CIT's Section 263 order and restored the AO's original order) was dismissed. Furthermore, a subsequent review petition filed against this dismissal was also dismissed. Therefore, the High Court found the present appeal to be infructuous. The operative direction was to dismiss the appeal.

What were the facts?

The assessee, M/s Tirupati Construction, had its original assessment order for assessment year 2009-10 completed on 01.06.2011, accepting the returned income. The Commissioner of Income Tax (CIT) invoked Section 263 of the Income Tax Act, 1961, setting aside the Assessing Officer's (AO) order on 28.03.2014. Subsequently, the AO passed a revised assessment order on 09.02.2015 under Section 143(3) read with Section 263, making an addition of Rs.41,84,076/-. This addition was on account of cash payment made to Shankar Singh Yadav for land purchase, invoking Section 40-A(3). The assessee appealed the CIT's Section 263 order to the Tribunal, which set aside the CIT's order and restored the AO's original order on 30.09.2015. The revenue challenged this Tribunal order via Income Tax Appeal No.14/2016, which was dismissed on 17.08.2016. A review petition (R.P. No.326/2015) against the dismissal was also dismissed on 11.04.2017.

What were the issues?

1. Whether the present appeal filed by the revenue has any merit or raises a substantial question of law, considering the prior dismissal of Income Tax Appeal No.14/2016 and Review Petition No.326/2015. Contentions: Assessee: The revenue's counsel conceded that in view of the dismissal of Income Tax Appeal No.14/2016 and Review Petition No.326/2015, the present appeal has no merit and does not raise any substantial question of law. Consequently, the appeal has become infructuous. Revenue: No specific arguments were recorded for the revenue on the merits of the case, other than the implicit challenge to the Tribunal's earlier order which was subsequently dismissed.

Which sections of the Income-tax Act were involved?

Section 143(3),Section 263,Section 40-A(3)

AI-generated summary — verify with the full judgment below

1 HIGH COURT OF MADHYA PRADESH : BENCH AT INDORE (Principal Commissioner of Income Tax vs. M/s Tirupati Construction) Indore, dated : 06.12.2017 Ms. Veena Mandlik, learned counsel for the appellant. Shri P. M. Choudhari, learned Senior Counsel for the respondent. Heard on the question of admission. The present appeal is arising out of assessment order dated 09.02.2015 passed under Section 143(3) r/w 263 of the Income Tax Act, 1961. Facts of the case are that the original assessment order under Section 143(3) of the Income Tax Act was completed on 01.06.2011, accepting the returned income. The CIT vide order under Section 263 of the Act dated 28.03.2014, set aside the order of the Assessing Officer. The Assessing Officer made the assessment and passed the order under Section 143 (3) read with Section 263 of the Act on 09.02.2015 and made addition of Rs.41,84,076/- on account of cash payment made to Shankar Singh Yadav during the assessment year 2009-10 for purchase of land by invoking the provisions of Section 40- A (3) of the Act. In the meanwhile, the respondent filed appeal before the Tribunal against the order passed by the CIT under Section 263 of the Act dated 28.03.2014. The Tribunal vide its order dated 30.09.2015 passed in ITA No.420/IND/2014 for the assessment year 2009-10 set aside the order of CIT and restored back the order of the assessing officer. The revenue challenged the said order dated 30.09.2015 by filing Income Tax Appeal No.14/2016. On 17.08.2016, the appeal was dismissed. Against the dismissal of the appeal, the Review Petition No.326/2015, was filed. The Division Bench of this Court dismissed the review petition 2 HIGH COURT OF MADHYA PRADESH : BENCH AT INDORE (Principal Commissioner of Income Tax vs. M/s Tirupati Construction) on 11.04.2017. Learned counsel for the appellant submits that in view of the dismissal of the ITA No.14/2016 and R.P. No.326/2016, the present appeal has no merit nor any substantial question of law is arising in this appeal. In fact, the appeal has rendered infructuous and, hence, dismissed. (P. K. Jaiswal)

(Virender Singh)

Judge Judge Digitally signed by Geeta Pramod Date: 2017.12.12 14:08:57 +05'30'

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