Sharda Dwelling Private Limited vs. Commissioner Of Income Tax Bhopal

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ITA/82/2003HC Madhya Pradesh29 July 2019Bench: HON'BLE SHRI JUSTICE S.C.SHARMA2 pages
For Petitioner: Sk.Jain,Jk.Jain,Ajay Bagadiya,Jagat Jain /
AI SummaryRemanded

What did the High Court hold?

The High Court held that the question of law was answered in favour of the assessee. The Court found merit in the assessee's contention that the ITAT had failed to adjudicate crucial grounds of appeal. Consequently, the High Court decided to remand the matter back to the Income Tax Appellate Tribunal. The Tribunal is directed to decide Grounds No. 2, 9, and 13 after hearing both parties. The operative direction is a remand to the Tribunal for fresh adjudication on the specified grounds. The appeal before the High Court stands disposed of. No issue was expressly left undecided by the High Court, other than the merits of the grounds themselves which are to be decided by the Tribunal.

What were the facts?

The assessee, Sharda Dwelling Private Ltd., filed an appeal before the High Court of Madhya Pradesh against an order of the Income Tax Appellate Tribunal (ITAT), Bench Indore, dated April 8, 2003. This ITAT order pertained to a block assessment period from May 21, 1991, to September 25, 1995. The assessee contended that three specific grounds of appeal (Grounds No. 2, 9, and 13) were not adjudicated by the ITAT. The High Court framed questions of law concerning the sustainability of the block assessment and the ITAT's failure to decide these grounds. The Revenue, represented by the Commissioner of Income Tax, conceded that the matter should be remanded to the ITAT.

What were the issues?

1. Whether the block assessment made in the case of the assessee for the period in question is sustainable, given that specific grounds were not adjudicated by the Tribunal? (Question of law/mixed law and fact, concerning the validity of the assessment proceedings). 2. Whether the Income Tax Appellate Tribunal was justified in not giving findings on Grounds No. 2, 9, and 13 as mentioned in its impugned order? (Question of law, concerning the procedural fairness and completeness of the Tribunal's decision). 3. In the absence of any finding on the aforementioned three grounds, whether the impugned order of the Tribunal is liable to be sustained or whether it needs to be remanded? (Question of law, concerning the consequence of non-adjudication of grounds). Assessee's Contention: The assessee argued that the ITAT failed to adjudicate three specific grounds (No. 2, 9, and 13), rendering the assessment and the Tribunal's order unsustainable and requiring remand. Revenue's Contention: The Revenue fairly stated before the High Court that the matter should be remanded back to the Tribunal for deciding the aforementioned three grounds.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

HIGH COURT OF MADHYA PRADESH Income Tax Appeal No.82/2003 (Sharda Dwelling Private Ltd. Vs. Commissioner of Income Tax) Indore, Dated:01/08/2019 Shri S.C. Bagadiya, learned senior advocate with Shri Jagat Jain, learned counsel for the appellant. Ms. Veena Mandlik, learned counsel for the respondent. The present income tax appeal has been filed under Section 260-A of the Income Tax Act, 1961 by the assessee being aggrieved by order passed by the Income Tax Appellate Tribunal, Bench Indore dated 08/04/2003 passed in Appeal ITA(SS) No.17/IND/2002 in respect of the block assessment period w.e.f. 21/05/1991 to 25/09/1995. At the outset, learned counsel for the appellant has stated before this Court that before the Tribunal, three grounds were not adjudicated i.e. ground No.2, 9 and 13 and the question of law framed by this Court is also to the same effect and the same reads as under:- “1] Having specifically formulated the questions No.2, 9 and 13 for examining whether block assessment made in the case of assessee for the year in question is sustainable or not ? Whether Tribunal was justified in not giving finding on Ground No.2, 9 and 13 as mentioned in the impugned order? 2] In the absence of any finding on the aforementioned 3 grounds – Whether the impugned order is liable to be sustained or whether it needs to be remanded?” Learned counsel for the Income Tax Department has fairly stated before this Court that the matter be remanded back to the Tribunal for deciding ground No.2, 9 and 13 of the appeal which was filed before the Tribunal. Digitally signed by KHEMRAJ JOSHI Date: 01/08/2019 17:08:40

Therefore, the question of law is answered in favour of the assessee. The matter is remanded back to the Tribunal to decide the ground No.2, 9 and 13 after hearing both the parties. The parties shall appear before the Tribunal on 26/08/2019. Appeal stands disposed off. C.c. as per rules. (S.C. Sharma) (Shailendra Shukla)

Judge

Judge krjoshi Digitally signed by KHEMRAJ JOSHI Date: 01/08/2019 17:08:40

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