2014 (6) TMI 150 - HC - Income Tax

Maintainability of appeal Held that -Whenever the CIT(A) and the Tribunal follows their own order for the preceding years or a view taken for the successive AYs, the Revenue files an appeal concerning only the last AY for which the Tribunal delivered the order - There is absolutely no explanation as to why, when on the same facts the judgment and order of the CIT(A) and the Tribunal for earlier AYs is accepted by the Revenue, an appeal is filed for the assessment year in question thus, no substantial question of law arises for consideration Decided against Revenue.

Summary

Issues: Lack of explanation in Revenue's appeal memos regarding choice of assessment year, Tribunal's consistent findings, absence of substantial question of law

In the judgment delivered by the High Court, the court noted a concerning trend where the Revenue files appeals without providing any explanation as to why a specific assessment year is chosen for filing the appeal. The court observed that in cases where the Tribunal's orders are based on law or an erroneous understanding, the Revenue can challenge the order, but in this instance, the Tribunal's findings have been consistent since 2001-02. The court emphasized that if the matter is purely factual and the Tribunal has not deviated from its earlier order on facts, the Revenue cannot file an appeal. The court highlighted that the Revenue's failure to provide an explanation in appeal memos can be fatal, leading to appeals being admitted based on questions of law without considering the factual acceptance of the Tribunal's view by the Revenue.

The judgment further emphasized the importance of the Revenue disclosing whether it has filed any appeal challenging the Tribunal's earlier orders for the same assessee and the reasons for not doing so. The court directed that all memos of appeal should include an additional statement explaining the Revenue's stance on the Tribunal's orders from prior assessment years and whether the Tribunal's factual findings have been accepted by the assessee or the Revenue. The court's decision to dismiss the appeal was based on the lack of any substantial question of law raised in the case, given the consistent findings of the Tribunal and the absence of deviation from its earlier orders on facts. The court highlighted the need for transparency and explanation in appeal memos to avoid unnecessary litigation and ensure clarity on the grounds for challenging Tribunal orders.