2013 (4) TMI 449 - HC - Income Tax

Disallowance of burning loss - Examining the merit of the case - Held that - The Tribunal dismissed the appeal filed by the Department and rightly so by making the observation that the order of the C.I.T. (A) has not been challenged before it on merits. Merely because for the earlier assessment years, the order of C.I.T. (A) has not been accepted by the Department, is no ground to challenge the order of C.I.T. (A) in the subsequent appeal before the Tribunal, without pointing out any error therein on merits. - Decided against the revenue.

Summary

Issues:
1. Appeal filed under section 260-A of the Income Tax Act against the order of the Income Tax Appellate Tribunal for the assessment year 1982-83.
2. Substantial questions of law regarding the justification of the Tribunal's decision and the deletion of disallowance of burning loss.

Analysis:
1. The appeal was admitted based on substantial questions of law, including whether the Tribunal was justified in its decision regarding the findings of the Commissioner of Income Tax (C.I.T.) and the grounds of appeal raised by the revenue. The appellant argued that the Tribunal should have examined the merits of the case, but the Court emphasized that the Tribunal is not obliged to consider grounds not raised in the appeal. The Tribunal rightly dismissed the appeal as the order of the C.I.T. (A) was not challenged on merits, and past decisions not accepted by the Department do not justify challenging subsequent orders without pointing out specific errors.

2. The Court decided against the Department on questions 1 and 2, affirming that the Tribunal did not err in dismissing the appeal. Regarding question 3, which pertained to the deletion of burning loss, the Court noted that this question did not arise from the Tribunal's order. The Department did not press the appeal on merits, and the Tribunal did not address this issue in its findings. Consequently, the Court found no merit in the appeal and dismissed it accordingly.