2013 (10) TMI 472 - HC - Income Tax

Whether ITAT was right in law in directing the assessing officer to examine the matter afresh after taking into account the book of accounts before the assessing officer despite sufficient opportunities and also that ld. CIT(A) Held that - Stated by Learned counsel for the respondent-assessee that the Tribunal vide the order impugned herein had remanded the case to the assessing officer to examine the matter afresh after taking into account the books of account of the assessee for the concerned assessment years which will be produced by the assessee In view of the said statement, the present appeals are disposed of as having been rendered infructuous.

Summary

Issues:
Identical issues in ITA Nos.299 and 300 of 2009.

Analysis:
The High Court of Punjab & Haryana heard the appeal filed by the appellant-revenue under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) for the assessment year 2003-04. The revenue raised substantial questions of law regarding the setting aside of the assessing officer's orders by the CIT(A) for re-examination based on the books of accounts of the assessee. The CIT(A) had directed a fresh examination, which was challenged by the revenue. The respondent-assessee, through their counsel, informed the court that after the remand, a new assessment order had been passed by the assessing officer, and the Tribunal had decided in favor of the assessee in May 2012. Consequently, the respondent requested the appeals to be considered infructuous. However, the appellant revenue's counsel stated they had not received any instructions from the department regarding the matter.

The Court, considering the submissions, disposed of the appeals as infructuous based on the respondent's statement. Nevertheless, the appellant-revenue was given the option to file an application for the revival of the appeals if any issues remained unresolved. The judgment highlighted the importance of the fresh assessment order passed by the assessing officer post the remand and the subsequent favorable decision by the Tribunal in favor of the respondent-assessee, leading to the disposal of the appeals as infructuous. The Court maintained flexibility by allowing the appellant-revenue to seek revival if necessary, emphasizing the need for clear instructions from the department in such legal proceedings.