THE COMMISSIONER OF INCOME TAX - 2 vs. HDFC BANK LTD

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ITXA/274/2012HC Bombay17 July 2014Bench: HON'BLE SHRI JUSTICE S.C. DHARMADHIKARI, HON'BLE SHRI JUSTICE B.P. COLABAWALLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arose for its consideration in this appeal. This decision was based on the High Court's prior judgment in Income Tax Appeal No. 250 of 2012, where the ITAT's order dated July 15, 2011, which quashed the Commissioner's section 263 order, was upheld, and the Revenue's appeal was dismissed. The reasoning was that since the foundation of the subsequent proceedings (the section 263 order) was invalidated by the ITAT and that decision was affirmed by the High Court, the present appeal challenging the ITAT's subsequent order (August 19, 2011) also lacked merit. The operative direction was to dismiss the appeal. No issue was expressly left undecided.

What were the facts?

The Revenue, Commissioner of Income Tax-II, filed an appeal before the Bombay High Court challenging an order of the Income Tax Appellate Tribunal (ITAT) dated August 19, 2011. The assessment year in question is 2005-06. The ITAT's order had set aside an order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, which was made pursuant to directions from the Commissioner under section 263. The ITAT had previously, on July 15, 2011, quashed the Commissioner's section 263 order, rendering subsequent proceedings, including the section 143(3) assessment, non-est. The High Court noted that a similar appeal (Income Tax Appeal No. 250 of 2012) concerning the ITAT's July 15, 2011 order had been dismissed, upholding the ITAT's decision.

What were the issues?

1. Whether the High Court should entertain the Revenue's appeal against the ITAT's order dated August 19, 2011, concerning assessment year 2005-06, given that the ITAT had previously quashed the Commissioner's section 263 order, making subsequent proceedings non-est. (Question of law) Assessee's Contention: The ITAT had correctly held that the Commissioner's order under section 263 was bad in law, and consequently, the subsequent assessment order under section 143(3) read with section 263 was non-est. The assessee relied on the ITAT's prior order dated July 15, 2011, which had been upheld by the High Court in a related appeal (Income Tax Appeal No. 250 of 2012). Revenue's Contention: The judgment does not record any specific arguments made by the Revenue in this particular appeal, other than its challenge to the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 260A,Section 143(3),Section 263

AI-generated summary — verify with the full judgment below

vrd 1 ITXA274/12 IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.274 OF 2012 Commissioner of Income Tax-II ...Appellant v/s HDFC Bank Ltd. ...Respondent Mr Suresh Kumar for Appellant. Mr J.D. Mistry, Sr. Counsel with Mr Atul Jasani for Respondent. CORAM : S.C. DHARMADHIKARI AND B.P. COLABAWALLA JJ.

Reserved on : 10th July 2014. Pronounced on : 17th July 2014. JUDGMENT (Per B.P. Colabawalla J.) :- 1. This Appeal under section 260A of the Income Tax Act 1961 has been filed by the Commissioner of Income Tax-2 challenging the order of the Income Tax Appellate Tribunal (hereinafter referred to as the ITAT) dated 19th August 2011. The Assessment Year in question is 2005-06. 2. The Appeal before the ITAT arose from the order passed by the Assessing Officer under section 143(3) of the Act in pursuance of the directions given by the Appellant in his order dated 23rd March 2009 CNR No : HCBM020039642012 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 04:19:50

vrd 2 ITXA274/12 invoking his powers under section 263 of the Act. The said order of the Appellant dated 23rd March 2009 under section 263, was set aside by the ITAT vide its order dated 15th July 2011passed in ITA No.3284/MUN/2009. The ITAT therefore held that the subsequent proceedings originating from the order passed by the Appellant under section 263 of the Act including the assessment order made by the Assessing Officer under section 143(3) r/w section 263 of the Act had become non-est in the eyes of law. In view thereof, the Appeal filed by the Assessee Bank was allowed by the ITAT. 3. The earlier order of the ITAT dated 15th July 2011 under which the order passed by the appellant under section 263 of the Act was quashed and set aside, came up for consideration before us in Income Tax Appeal No.250 of 2012. In the judgment passed in Income Tax Appeal No.250 of 2012, we have upheld the order passed by the ITAT dated 15th July 2011 and dismissed the Appeal of the Revenue. In view thereof and for the reasons stated in the said judgment passed in Income Tax Act No.250 of 2012 we are of the view that even in this Appeal, no substantial question of law arises for our consideration. The Appeal is therefore dismissed. No order as to costs. ( B.P. COLABAWALLA J. ) (S.C. DHARMADHIKARI J. )

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