2003 (8) TMI 9 - HC - Income Tax

Whether Tribunal was justified in setting aside the reopening of the fact that proceedings initiated were on the basis of vague and non-specific information, which otherwise is against the material on record? - question suggested about the validity of reassessment proceedings which has been held against the Revenue is a substantial question of law. However, we find from the order of the Tribunal that the Tribunal has not rested its decision solely on the basis of the invalidity of the proceedings under section 147/148, but it has also decided the appeal filed by the assessee on the merits of the assessment also, on all the grounds raised by the assessee. The Revenue has not raised any grievance about the findings recorded on the merits of the assessment. In view thereof, the question raised by the Revenue remains only academic, so far as this appeal is concerned appeal fails and it is dismissed

Summary

The High Court of Rajasthan dismissed the appeal concerning the reopening of assessment for the assessment year 1991-92, as the Tribunal found the proceedings to be invalid based on vague grounds. The Tribunal also made decisions on the merits of the assessment, which were not challenged by the Revenue. The appeal was dismissed as even if the substantial question of law was decided in favor of the Revenue, it would not affect the final order of the Tribunal on merit.