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2013 (11) TMI 17 - HC - Income TaxScope of Committee of Disputes - Held that - The Committee of Disputes was only to decide, whether or not government authority/public sector undertaking should be permitted to proceed with the appellate proceedings - the Revenue had sought permission, but the same was declined in November, 2009 - The decision taken by the Committee of Disputes dated 12th November, 2009, is not undone and has not become a nullity - If the contention of the Revenue is accepted, then in all case in which the Committee of Disputes had declined permission to prefer appeal/legal proceedings, during the period from 1994 onwards, can now be reopened - The matters which have been considered and decided by the Committee of Disputes and permission specifically denied cannot be reopened Decided against Revenue.
Issues:
1. Revival of ITA No.86/2009 for disallowance of deductions under Section 80HH, 80I, and 80IA of the Income Tax Act, 1961. 2. Permission to file an appeal before the High Court under Section 260A of the Act by the Revenue. 3. Validity and applicability of the decision of the Committee of Disputes in declining permission for appeal. 4. Interpretation of the Supreme Court decision in Electronics Corporation of India Ltd. case regarding the mechanism of the Committee of Disputes. Analysis: 1. The Revenue filed for revival of ITA No.86/2009 concerning deductions under Section 80HH, 80I, and 80IA. The Income Tax Appellate Tribunal had remitted the matter, and the Revenue appealed against this remit order. However, the Committee of Disputes declined permission for the appeal, deeming it premature as the matter was sent back for fresh decision by the AO. The Court upheld the Committee's decision, emphasizing that the appeal cannot proceed prematurely. 2. The Revenue sought permission to file an appeal under Section 260A of the Act. The Committee of Disputes, established to resolve inter-departmental litigations, refused permission, considering the appeal premature. The Court noted that the Revenue did not challenge this decision earlier. The Court dismissed the Revenue's argument to ignore the Committee's decision, stating that the mechanism had failed and caused delays in litigation. 3. The Court analyzed the Supreme Court's decision in Electronics Corporation of India Ltd. case, which criticized the Committee of Disputes' inefficiency and recommended recalling its directions. The Court held that the Committee's decision to deny permission for the appeal remained valid, and it cannot be undone. The Court rejected the Revenue's plea to reopen cases where permission was denied by the Committee. 4. The Court emphasized that the Committee of Disputes was established to decide on government authorities' appeal permissions. The Court rejected the Revenue's contention to apply the Electronics Corporation of India Ltd. case to override the Committee's decision. The Court maintained that past decisions of the Committee denying appeal permissions cannot be revisited, thereby dismissing the Revenue's application. In conclusion, the Court upheld the Committee of Disputes' decision to decline permission for the Revenue's appeal, citing the mechanism's inefficiency and the need to respect past decisions. The Court dismissed the Revenue's application, emphasizing the finality of the Committee's decisions in such matters.
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