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Writ Court need not look into an appeal in which question of law stands settled in assessee’s favor & Revenue filed no appeal in challenge thereof: HC

2019-TIOL-1741-HC-MAD-IT

IN THE HIGH COURT OF MADRAS

Tax Case Appeal Nos.1276 to 1278 of 2009

SHRI N BASKARAN

Vs

ASSISTANT COMMISSIONER OF INCOME TAX
CIRCLE I, VELLORE

T S Sivagnanam & V Bhavani Subbaroyan, JJ

Dated: July 18, 2019

Appellant Rep by: Mr G Baskar
Respondent Rep by: 
Mr M Swaminathan, SSC & Mrs V Pushpa, JSC & Mrs S Premalatha, JSC

Income tax – Section 147

Keywords – jurisdiction to reopen assessment – change of opinion

THE assessee, an individual, had preferred the present petition challenging the action of ITAT in upholding the jurisdiction of AO u/s 147 in reopening the assessment by holding that there was no change of opinion.

On appeal, the HC held that,

Whether when substantial question of law is answered in favour of assessee and no independent appeal has been preferred by Revenue, then no appeal lies for further consideration – YES: HC

++ it is represented by the counsel on either side that the substantial question of law framed for consideration is not required to be answered in the light of the fact that the Tribunal granted relief to the assessee on the merits of the case. However, with regard to the reopening of assessment u/s 147, the Tribunal held against the assessee, as against which, the appeals have been preferred. It is further submitted that the Revenue has not preferred any independent appeal questioning the order of the Tribunal, which was decided on merits in favour of the assessee. In the light of such submissions, the issue raised in these appeals has become academic.

Case disposed of

JUDGEMENT

Per: T S Sivagnanam:

We have heard Mr.G.Baskar, learned counsel for the appellant and Mr.M.Swaminathan, learned Senior Standing Counsel appearing for the respondent.

2. These appeals filed by the assessee under Section 260A of the Income Tax Act, 1961 (for short, the Act) are directed against the common order dated 16.1.2009 in ITA.Nos.124 to 126/Mds/2008 on the file of the Income Tax Appellate Tribunal, Chennai ‘C’ Bench respectively for the assessment years from 2002-03 to 2004-05.

3. The appeals were admitted on 24.11.2009 on the following substantial question of law :

“Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in upholding the jurisdiction of the Assessing Officer under Section 147 in reopening the assessment by holding that there was no change of opinion ?”

4. It is represented by the learned counsel on either side that the substantial question of law framed for consideration is not required to be answered in the light of the fact that the Tribunal granted relief to the assessee on the merits of the case. However, with regard to the reopening of assessment under Section 147 of the Act, the Tribunal held against the assessee, as against which, the above appeals have been preferred. It is further submitted that the Revenue has not preferred any independent appeal questioning the order of the Tribunal, which was decided on merits in favour of the assessee.

5. In the light of the above submissions, the issue raised in these appeals has become academic and it is not required to be answered, as the assessee succeeded before the Tribunal and it has become final. Further, the Revenue has not preferred any appeal on the finding rendered in that regard on merits.

6. Accordingly, the above tax case appeals are disposed of, as there is no necessity to answer the substantial question of law framed, which is left open. No costs.

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