THE COMMISSIONER OF INCOME TAX vs. M/S A S K BROTHERS LTD

ITA/620/2007HC KarnatakaKAHC01046127200712 August 2014Bench: N.KUMAR,RATHNAKALA3 pages

AI SummaryRemanded

What did the High Court hold?

The High Court held that the common order passed by the Income-Tax Appellate Tribunal was indeed a cryptic order, lacking the necessary reasoning. This finding was consistent with the High Court's previous decision in ITA Nos. 618 and 619/2007, which dealt with the same common order. Consequently, for the same reasons, the impugned order in ITA No. 620/2007 was set aside. The matter was remanded back to the ITAT for consideration in accordance with the law, with all contentions left open for the Tribunal to decide. The operative direction was to remand the matter to the ITAT.

What were the facts?

The Revenue, comprising the Commissioner of Income Tax and the Deputy Commissioner of Income Tax, filed three appeals (ITA Nos. 618, 619, and 620/2007) against a common order passed by the Income-Tax Appellate Tribunal (ITAT) for three assessment years. The ITAT's order was challenged by the Revenue. The High Court of Karnataka had previously dealt with ITA Nos. 618 and 619/2007. In those cases, the High Court set aside the ITAT's common order, deeming it a "cryptic order" that lacked proper reasoning. The High Court remanded the matter back to the ITAT for a reasoned decision. The present appeal, ITA No. 620/2007, concerns the same common order from the ITAT.

What were the issues?

1. Whether the order passed by the Income-Tax Appellate Tribunal is a cryptic order, requiring a reasoned decision (question of law). The Revenue contended that the ITAT's common order was cryptic and lacked proper reasoning. The High Court had previously acknowledged this in related appeals. The Revenue sought to have this order set aside and the matter remanded for a reasoned decision. The Respondent (M/s ASK Brothers Ltd.) did not present any specific arguments recorded in this judgment, as the appeal was disposed of on procedural grounds.

Which sections of the Income-tax Act were involved?

Section 260A

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF KARNATAKA AT BANGALORE

DATED THIS THE 12th DAY OF AUGUST 2014

PRESENT

THE HON’BLE MR JUSTICE N. KUMAR

AND

THE HON’BLE MRS JUSTICE RATHNAKALA

ITA NO.620/2007 BETWEEN:

THE COMMISSIONER OF INCOME TAX C.R.BUILDING,

QUEENS ROAD,

BANGALORE

THE DEPUTY COMMISSIONER OF INCOME TAX CENTRAL CIRCLE 2(1) BANGALORE

...APPELLANTS

(BY SRI K V ARAVIND, ADV.)

AND:

M/S A S K BROTHERS LTD THE ATRIA, NO.1, PALACE ROAD, BANGALORE

...RESPONDENT

(BY SRI A SHANKAR AND M.LAVA, ADVS.)

This appeal is filed under Section 260A of Income Tax Act, 1961 praying to allow the appeal and set aside the orders passed by the Income-Tax Appellate Tribunal, Bangalore in ITA No.1076/Bang/2006 dated 02.3.2007 and confirm the order of the Appellate Commissioner confirming the order passed by the

2 Deputy Commissioner of Income Tax, Central Circle - 2(1), Bangalore.

This appeal coming on for orders this day, N Kumar J., delivered the following:

JUDGMENT

Against the common order passed by the tribunal for three years, revenue preferred three appeals i.e., ITA Nos. 618, 619 and 620/2007.

This Court while dealing with ITA Nos.618 and 619/2007, set-aside the common order on the ground that the common order in the cases is a cryptic order and the tribunal has to pass a reasoned order. Accordingly, it set-aside the order and remanded the matter back to the tribunal by its order dated 04.02.2014.

Once, in those two appeals it is held that the common order is a cryptic order, same follows as far as this appeal is concerned. For the same reasons the impugned order is set-aside. Matter is remanded back

3 to the tribunal for consideration in accordance with law. All contentions are left open.

Appeal is disposed off.

Sd/- JUDGE

Sd/-

JUDGE

brn

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