THE COMMISSIONER OF INCOME TAX vs. M/S. BEST BAKERY & ICE CREAM PARLOUR

ITA/115/2012HC KeralaKLHC01024037201222 September 2017Bench: HONOURABLE MR.JUSTICE ANTONY DOMINIC4 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that since the impugned orders of the ITAT were passed entirely relying on the ITAT's order in M/s. Matha Enterprises, and that order has been set aside by this Court and remitted for reconsideration, the impugned orders in the present appeals are also liable to be set aside. The Court reasoned that the foundation of the ITAT's decision in these cases no longer exists. Therefore, the High Court set aside the impugned orders of the ITAT and remitted the matters back to the ITAT for reconsideration. The ITAT is directed to hear and dispose of these matters along with the appeal in the case of M/s. Matha Enterprises and connected cases. No specific findings on the merits of the assessment years 2001-02 to 2007-2008 were made.

What were the facts?

The appeals were filed by the Revenue challenging a common order passed by the Income Tax Appellate Tribunal (ITAT), Cochin Bench. The assessment years involved are 2001-02 to 2007-2008. The ITAT's order in these appeals (ITA Nos. 507 to 513 of 2010) was based on its earlier decision in the case of M/s. Matha Enterprises, Angamaly Vs. Commissioner of Income Tax, Ernakulam. The Revenue had also filed an appeal (ITA No. 145/2011) against the ITAT's order in the Matha Enterprises case. This Court, by a judgment dated November 11, 2016, had set aside the ITAT's order in Matha Enterprises and remitted the matter for reconsideration by the ITAT. Since the impugned orders in the present appeals were entirely based on the Matha Enterprises order, which has now been set aside and remitted, the present appeals are also to be set aside and remitted.

What were the issues?

1. Whether the High Court should set aside the ITAT's order in the present appeals, which was based on a previous ITAT order that has since been set aside by the High Court and remitted for reconsideration. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (M/s. Best Bakery & Ice Cream Parlour) in these appeals. However, the fact that the appeals are being remitted implies that the assessee's position, as upheld by the ITAT in the impugned order, was being challenged by the Revenue. Revenue's Contentions: The Revenue contended that the ITAT's order in the present appeals should be set aside and the matters remitted for reconsideration, as the basis of the ITAT's decision (the order in M/s. Matha Enterprises) had been set aside by the High Court and remitted. The Revenue relied on the High Court's judgment in the Matha Enterprises case.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF KERALA AT ERNAKULAM PRESENT: THE HONOURABLE MR.JUSTICE ANTONY DOMINIC & THE HONOURABLE MR. JUSTICE A.M.BABU FRIDAY, THE 22ND DAY OF SEPTEMBER 2017/31ST BHADRA, 1939 ITA.No. 115 of 2012 ----------------------- AGAINST THE ORDER/JUDGMENT IN ITA 507/Coch/2010 of I.T.A.T, COCHIN BENCH DATED 31-01-2012 APPELLANT/RESPONDENT: ----------------------- THE COMMISSIONER OF INCOME TAX, (CENTRAL), COCHIN.

BY ADVS.SRI.P.K.R.MENON, SR.COUNSEL, GOI (TAXES) SRI.JOSE JOSEPH, SC, FOR INCOME TAX RESPONDENT/APPELLANT: ------------------------ M/S. BEST BAKERY & ICE CREAM PARLOUR, NEAR K.S.R.T.C. BUS STAND, ANGAMALY, PIN-683572.

BY ADV. SRI.ANIL D. NAIR BY ADV. SRI.J.R.PREM NAVAZ BY ADV. SMT.NIVEDITA A.KAMATH BY ADV. SRI.R.SREEJITH THIS INCOME TAX APPEAL HAVING BEEN FINALLY HEARD ON 22-09-2017 ALONG WITH ITA. 121/2012, ITA. 124/2012, ITA. 125/2012 & ITA. 127/2012, THE COURT ON THE SAME DAY DELIVERED THE FOLLOWING:

ITA.No. 115 of 2012 APPENDIX APPELLANT'S ANNEXURES :- ANNEXURE .A : COPY OF THE ORDER OF ASSESSING OFFICER DTD.29.12.2008. ANNEXURE. B : COPY OF THE ORDER OF THE COMMISSIONER OF INCOME TAX (APPEALS) DTD.15.6.2010. ANNEXURE. C : COPY OF THE ORDER OF THE TRIBUNAL DTD.31.1.2012. True copy P.A. to Judge

ANTONY DOMINIC & A.M.BABU, JJ. -------------------------------------------------------------- I.T.Appeal Nos.115, 121, 124, 125 & 127 of 2012 -------------------------------------------------------------- Dated this the 22nd day of September, 2017 JUDGMENT Antony Dominic, J. These appeals are filed by the Revenue impugning the common order passed by the Tribunal in I.T.A.Nos.507 to 513 of 2010 concerning the assessment years 2001-02 to 2007- 2008. The appeals were disposed of in the light of the order of the Tribunal in M/s.Matha Enterprises, Angamaly Vs. Commissioner of Income Tax, Ernakulam (ITA No.302/2010 and connected cases). The order of the Tribunal in the case of Matha Enterprises (supra) was the subject matter of ITA.No.145/2011 filed by the Revenue and this Court by judgment dated 11th November, 2016 disposed of the appeal and connected cases setting aside the order of the Tribunal and remitting the matters for reconsideration by the Tribunal itself. Since the impugned orders were rendered entirely relying on the order of the Tribunal in the case of Matha Enterprises (supra) and since that order has been set aside by

I.T.Appeal Nos.115, 121, 124, 125 & 127 of 2012 ..2.. this Court and the matter is remitted, the orders impugned herein are also liable to be set aside and directed to be reconsidered by the Tribunal. Accordingly these appeals are disposed of setting aside the impugned orders of the Tribunal and remitting the matters to the Tribunal which shall hear and dispose of the matters along with the appeal in the case of Matha Enterprises (supra) and connected cases. Sd/- ANTONY DOMINIC, JUDGE Sd/- A.M.BABU, JUDGE skj

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