High Court Of Madras
South India Surgical Co. (P) Ltd. vs. Assistant Commissioner Of Income Tax
Sections 260A
V.S. Sirpurkar & F.M. Ibrahim Kalifulla, JJ.
Tax Case (Appeal) Nos. 113 & 114 of 2002
3rd March, 2003
Counsel Appeared
V. Ramachandran, for the Appellant : T. Ravikumar, for the Respondent
JUDGMENT
V.S. SiRPURKAR, J. :
Mr. T. Ravikumar, learned standing counsel for income-tax accepts notice on behalf of the respondent.
2. After hearing learned senior counsel, Mr. V. Ramachandran, and learned counsel for the Department in extenso, it is seen that in the impugned order, the Income-tax Appellate Tribunal (hereinafter referred to as “the Tribunal”), has not considered the first issue, which is reflected in the following words :
“1. The CIT(A) erred in not totally deleting the addition of Rs. 79,47,330 made to the closing stock accounted for by the appellant in the return and the accompanying documents, though the CIT(A) has accepted substantially the contention of the appellant. He erred in not restricting the allowance and not excluding the total addition.”
3. It is seen that this was a specific ground raised before the Tribunal and the Tribunal has merely referred to the order passed by the CIT(A) and has merely paraphrased the findings given by the CIT(A) in para 13 of his order. Seeing the whole order, it is not seen as to in what manner the challenge to the findings of the CIT(A) in respect of the aforementioned amount has been dealt with by the Tribunal. The Tribunal, in our opinion, could not merely say that it agrees with the findings of the CIT(A) and more particularly in respect of the aforementioned amount of Rs. 79,47,330. Learned counsel appearing on behalf of the Department also tried to suggest that the whole order as such and the findings therein were confirmed by the Tribunal in internal page No. 8 of its order, which is to the following effect : “On analysing the discussions made by the CIT(A) and the consequent findings given by him, we find that the decision of the CIT(A) on this issue is very clear and well considered.”
4. We are afraid, we cannot see this as a total confirmation of the order of the CIT(A), for the simple reason that the issue that the Tribunal was speaking of in the aforementioned lines only appears to be issue No. (iv), which appears in internal page No. 7. Further, the discussion is also in respect of issue No. (iv), which pertains to Hyderabad office stock. In the circumstances, we have no other go but to remand the matter. A total nonconsideration by the appellate Court would entail a substantial question of law. In that view, we would choose to interfere in this order and send back the matter for fresh decision of this issue alone. We do not see any reason to differ with the Tribunal in so far as the other issues are concerned.
[Citation : 263 ITR 5]
