THE COMMISSIONER OF INCOME TAX vs. M/S SOCIADADE DE FOMENTO INDUSTRIAL PVT. LTD.

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TXA/29/2010HC BombayHCBM05001356201001 July 2010Author: F. M. REIS,A. S. OKA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises in the appeal. The Court noted that a Division Bench of the Gauhati High Court in Smt. Bandana Gogoi Vs. Commissioner of Income Tax had held that Section 143(2) is mandatorily applicable to block assessments. This view was subsequently approved by a Division Bench of the Bombay High Court in CWT vs. J.M. Scindia (HUF). Relying on these precedents, the High Court found that the Tribunal's decision was in line with established legal principles. Consequently, the appeal was dismissed.

What were the facts?

The appeal, filed by the Commissioner of Income Tax (Appellant) under Section 260-A of the Income Tax Act, 1961, challenges an order dated 25th November 2009 passed by the Income Tax Appellate Tribunal (ITAT), Panaji. The ITAT had declared the block assessment order for the respondent assessee, M/s Sociadade De Fomento Industrial Pvt. Ltd., for the block period 1st April 1990 to 13th September 2000 as ab initio void. The ITAT's reasoning was that the mandatory requirement of Section 143(2) of the Income Tax Act, 1961, which applies to block assessments, was not met.

What were the issues?

1. Whether the requirement of Section 143(2) of the Income Tax Act, 1961, is mandatorily applicable while concluding a block assessment? (Question of law) The Appellant contended that the question of law is whether Section 143(2) applies to block assessments. The judgment does not record specific arguments from the Appellant beyond framing this question. The Tribunal, in its order under challenge, held that Section 143(2) is mandatory for block assessments. The Appellant is challenging this finding. The judgment does not record any arguments from the Respondent.

Which sections of the Income-tax Act were involved?

Section 143(2),Section 260-A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 29 OF 2010 THE COMMISSIONER OF INCOME TAX ... Appellant Versus M/S SOCIADADE DE FOMENTO INDUSTRIAL PVT. LTD. ... Respondent Mrs. Asha Dessai, Advocate for the Appellant.

Coram:- A. S. OKA & F. M. REIS, JJ.

Date:- 1st July, 2010 P.C: We have heard the Learned Counsel appearing for the Appellant in support of this appeal under section 260-A of the Income Tax Act, 1961. 2. The challenge is to the order dated 25th November, 2009 passed by the Income Tax Appellate Tribunal, Panaji. The Tribunal held that the block assessment order passed in the respondent assesse's ap/-

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