S.C : Whether in aforesaid situation, High Court instead of itself answering issues raised before Tribunal, should have remanded matter back to it for disposal afresh

Supreme Court Of India

Teknika Components vs. CIT, Shimla

Assessment Years : 2002-03 To 2003-04

Section : 260A

S.H. Kapadia, Cj. K.S. Radhakrishnan And Swatanter Kumar, JJ.

Civil Appeal No. 8211 Of 2011

September 23, 2011

JUDGEMENT

1. Heard learned counsel on both sides.

2. Leave granted.

3. In the present case, the assessee had claimed deduction under section 80-IA of the Income Tax Act, 1961, [‘Act’, for short, which was allowed by the Assessing Officer. However, the Commissioner of Income Tax [‘CIT’ for short] passed an order under Section 263 of the Act, the effect of which was to disallow deduction granted under Section 80-IA by the Assessing Officer. Aggrieved by the order of CIT, the assessee preferred an appeal to the Income-tax Appellate Tribunal [‘Tribunal’, for short]. That appeal was allowed by the Tribunal. The High Court, in the appeal preferred by the department, came to the conclusion that the Tribunal had not answered some of the issues, which stood decided by the CIT under Section 263 of the Act. In the circumstances, the High Court set aside the order of the Tribunal.

4. We are of the view that, instead of High Court itself answering those issues, it ought to have remitted the case to the Tribunal which has not been done in the present case. Against the order of the High Court, the assessee approached the Court by way of special leave petition. On 5th January, 2011, the Court permitted the Department to proceed with reassessment without prejudice to the rights and contentions of the parties. We are informed that the Assessing Officer has reassessed and passed a fresh order on 5th May, 2011. This time, he has disallowed the claim for deduction under Section 80-IA of the Act.

5. In the peculiar facts and circumstances of the case, since the assessee has preferred an appeal to CIT (Appeals) against the order of the Assessing Officer, dated 5th May, 2011, we direct CIT (Appeals) to decide the matter uninfluenced by the earlier order of CIT under Section 263 of the Act as well as the impugned order passed by the High Court. Accordingly, the impugned order is set aside and the civil appeal filed by the assessee stands disposed of. Till the appeal is heard and disposed of by CIT (Appeals), the order passed by the Court on 5th January, 2011 will continue to operate.

[Citation : 346 ITR 570]

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