2014 (6) TMI 543 - HC - Income Tax

Rectification of order u/s u/s 254(2) of the Act Jurisdiction of the HC - Held that - Relying upon Commissioner of Income Tax vs. Tata Chemicals Ltd. 2002 (4) TMI 42 - BOMBAY High Court - the High Court can decide only that question which was raised but not determined by the Tribunal - it was necessary that the question sought to be raised ought to have been raised before the Tribunal and then if it had not determined it, one can say that it has not been determined by the Tribunal and, therefore, the High Court should look into it - it was open to the assessee to raise the issues in its appeal before u/s 260A of the Act - the Tribunal has correctly observed that there was no mistake apparent in the order passed by the Tribunal Decided against Assessee.

Summary

Issues:
1) Assailing the order of the Income Tax Appellate Tribunal under Article 226 of the Constitution of India.
2) Seeking rectification of the Tribunal's order related to specific assessment years.
3) Non-adjudication of issues regarding Section 153A proceedings and relevant case laws.
4) Dismissal of rectification application by the Tribunal.
5) Appeal under Section 260A of the Income Tax Act.

Analysis:
1) The petitioner challenged the Income Tax Appellate Tribunal's order of 21 March 2012 under Article 226 of the Constitution of India. The Tribunal's order dated 22 April 2008, disposing of appeals for assessment years 1998-99 to 2004-05, was contested through a Misc. Application seeking rectification for specific assessment years.

2) The Tribunal identified two issues for rectification in the impugned order. Firstly, the non-adjudication of whether proceedings under Section 153A of the Income Tax Act can be initiated in cases where no material was found during a search despite returns being processed under Section 143(1)(a). Secondly, the failure to consider and discuss relevant case laws cited by the assessee during the original proceedings.

3) The petitioner contended that both issues were raised during the original proceedings but remained undetermined in the Tribunal's order dated 22 April 2008. Citing the decision in Commissioner of Income Tax vs. Tata Chemicals Ltd., the petitioner argued that rectification was necessary before filing an appeal under Section 260A of the Act.

4) The Revenue's counsel reiterated the findings of the impugned order, opposing the petitioner's claims for rectification.

5) The High Court referred to the decision in Tata Chemicals case, emphasizing that only questions raised but not determined by the Tribunal could be decided under Section 260A. Even if the issues were raised by the petitioner and not considered by the Tribunal, the Court held that the petitioner could have raised them in the appeal under Section 260A. The Tribunal's finding of no apparent mistake in the original order of 22 April 2008 led to the dismissal of the rectification application.

6) Ultimately, the High Court found no merit in the petitions, dismissing them without costs. The Court upheld the Tribunal's decision, emphasizing the petitioner's opportunity to address the issues in the appeal under Section 260A of the Income Tax Act.