PR COMMISSIONER OF INCOME TAX ROHTAK vs. SHER SINGH SHIVRAIN

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ITA/233/2016HC Punjab & HaryanaPHHC01110428201612 February 2020Bench: MR. JUSTICE AJAY TEWARI,MR. JUSTICE AVNEESH JHINGAN1 pages

AI SummaryRemanded

What did the High Court hold?

The High Court, considering the arguments presented, deemed it appropriate to set aside the orders of the CIT(A) and the ITAT. The matter was remanded back to the Assessing Officer. The Assessing Officer is to take a fresh decision on the issue of the deduction claimed by the assessee. Crucially, the assessee will be provided an opportunity to place any further material on record that they deem relevant to support their claim. The principle underlying this decision is that a fresh opportunity for evidence submission is warranted in such circumstances, especially when the factual matrix is contested and the prior assessment proceedings under Section 143(1) might not have involved a detailed examination of the claim. No specific finding was given on the merits of the deduction itself.

What were the facts?

The Revenue, Pr. Commissioner of Income Tax, Rohtak, filed an appeal against an order of the CIT(A) and the Income Tax Appellate Tribunal (ITAT). The ITAT had allowed a deduction claimed by the assessee, Sh. Sher Singh Shivrain, on land purchased and subsequently sold. A significant factor considered by the Tribunal was that the assessee's earlier returns had been accepted. It was acknowledged that some of these returns were accepted under Section 143(1) of the Income Tax Act, 1961, and not under Section 143(3). The appeal was filed for the assessment year(s) not specified in the judgment.

What were the issues?

1. Whether the Tribunal erred in allowing the deduction claimed by the assessee on the land purchased and subsequently sold, considering the assessee's earlier returns were accepted under Section 143(1) of the Income Tax Act, 1961. Assessee's Contention: The assessee argued that purely factual issues were raised in the appeal. Revenue's Contention: The Revenue's appeal implicitly challenges the allowance of the deduction by the lower authorities, particularly in light of the nature of acceptance of earlier returns.

Which sections of the Income-tax Act were involved?

Section 143(1),Section 143(3)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 233 of 2016 Date of Decision: 12.02.2020. Pr. Commissioner of Income Tax, Rohtak .......Appellant Versus Sh. Sher Singh Shivrain ......Respondent CORAM: HON'BLE MR. JUSTICE AJAY TEWARI HON'BLE MR. JUSTICE AVNEESH JHINGAN Present: Mr. Sandeep Goyal, Advocate for the appellant. Mr. Pankaj Jain, Senior Advocate with Mr. Sachin Bhardwaj, Advocate for the respondent. AJAY TEWARI, J.(Oral) 1. This appeal has been filed by the revenue against the order of CIT appeal and the Tribunal allowing the deduction which were made by the assessee on the land purchased by him and subsequently sold. 2. One of the grounds which weighed with the Tribunal was that the earlier returns of the assessee were accepted. It is, however, not disputed that some of the returns have been accepted under Section 143(1) of the Income Tax Act, 1961 (for short 'the Act') and not under Section 143(3) of the Act. 3. Learned senior counsel appearing for the assessee has argued that purely factual issues have been raised. 4. In the circumstance, we deem it appropriate to set aside the orders and remand the matter back to the Assessing Officer to enable him to take a fresh decision after giving an opportunity to the assessee to place whatever material he wants to place on record even now. 5. Disposed of accordingly.

(AJAY TEWARI) JUDGE (AVNEESH JHINGAN) 12.02.2020 JUDGE reema Whether speaking/reasoned: Yes Whether Reportable: No REEMA SAINI 2020.02.17 14:58 I attest to the accuracy and integrity of this document High Ciourt, Chandigarh

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