2005 (1) TMI 50 - HC - Income Tax

Tribunal restoring the case - Order of the Commissioner of Income-tax (Appeals) of sustaining additions was short and cryptic and he did not consider the different aspects of the matter. The Revenue had preferred an appeal before the Tribunal and the Tribunal after considering the various pleas has restored the matter to the file of the Commissioner of Income-tax (Appeals) to decide the matter afresh after giving opportunity to both the sides of being heard. - held that where the Tribunal does not decide any point against or in favour of either of the two parties and remands the case to the first appellate authority for fresh hearing and disposal no reference lies in such circumstances - order of the Appellate Tribunal restoring the case for fresh disposal back to the Commissioner of Income-tax (Appeals) is legally valid

Summary

Issues:
Validity of order restoring case for fresh disposal to Commissioner of Income-tax (Appeals) under Income-tax Act, 1961 for assessment year 1979-80.

Analysis:
The High Court of ALLAHABAD was presented with a question regarding the legality of an order by the Income-tax Appellate Tribunal, Allahabad, which had referred the case back to the Commissioner of Income-tax (Appeals) for fresh disposal. The Commissioner of Income-tax (Appeals) had previously made a brief order without proper adjudication, leading the Tribunal to remand the matter for a fresh decision after considering various pleas. The High Court, in its analysis, found no fault in the Tribunal's approach. It cited a previous case, CIT v. Naresh Chandra Bhargava, where it was established that when the Tribunal remands a case to the first appellate authority for a fresh hearing and disposal without deciding any point against or in favor of either party, no reference lies in such circumstances. Consequently, the High Court answered the question in favor of the Revenue and against the assessee, with no order as to costs.