2010 (2) TMI 1131 - HC - Income Tax

Summary

Issues involved: Challenge to Tribunal's order under Section 254(2) of the Income Tax Act, 1961.

The High Court of Bombay addressed a petition under Article 226 of the Constitution challenging the Tribunal's order dated 9th November, 2009, which dismissed the petitioner's application under Section 254(2) of the Income Tax Act, 1961. The petitioner had previously filed an appeal with the Tribunal, which was dismissed on 10th July, 2007, leading to a miscellaneous application under Section 254(2) that was also dismissed on 11th July, 2008. The Court, in a Division Bench decision on 19th January, 2009, found merit in the petitioner's grievance regarding the Tribunal's failure to fully address the application under Section 254(2), particularly concerning the reliance on certain judgments without providing the petitioner an opportunity to respond and the omission of considering a statement from the donor. Consequently, the Court remanded the proceedings back to the Tribunal for a fresh decision after hearing both parties. The Tribunal's initial judgment had disregarded the donor's statement in relation to gifts received during the assessment year 1995-96, leading to an addition under Section 68 by the Assessing Officer, who deemed the gifts as not genuine.

After the Court's remand order, the Tribunal issued a fresh judgment on 9th November, 2009, acknowledging the petitioner's grievances as highlighted in the Court's previous decision. The Tribunal's reconsideration of the matter was essential to ensure a fair and comprehensive assessment of the petitioner's claims and the relevant legal aspects under Section 254(2) of the Income Tax Act, 1961.