2015 (8) TMI 229 - HC - Income Tax

Revision u/s 263 - case of the assessee that invocation of the power under Section 263 was illegal and that even on merits the order passed by the Commissioner was untenable - ITAT confirmed revision - Held that - We have gone through the common order passed by the Tribunal. Reading of the order shows that the Tribunal has made reference to few judgments cited before it and finally concluded that the Commissioner has rightly exercised his jurisdiction under Section 263 of the Act. However, the Tribunal has not dealt with any of the contentions raised by the appellant on the merits of the matter. In other words, in so far as the contentions of the appellant on the merits of the issue, which were urged in the appeal memorandum are concerned, there is total non-application of mind on the part of the Tribunal. This necessitates re-consideration of the appeal by the Tribunal. - Decided partly in favour of assessee for statistical purposes.

Summary

Issues:
Challenging Tribunal's order under Section 263 of the Income Tax Act for assessment years 2009-2010 and 2006-2007.

Analysis:
The appeals were filed by the assessee challenging the Tribunal's order dismissing ITA Nos.257 and 258 of 2013 for the assessment years 2009-2010 and 2006-2007. The Commissioner had issued notices under Section 263 of the Income Tax Act proposing to revise the assessment orders against the assessee. The objections filed by the assessee were overruled, and the Commissioner passed orders under Section 263. The assessee then filed appeals before the Tribunal, which were dismissed on 5.9.2013. The main contention raised by the appellant was that the Tribunal did not examine the matter properly. The appellant argued that the invocation of power under Section 263 was illegal and that the order passed by the Commissioner was untenable. The Tribunal, in its common order, referenced a few judgments and concluded that the Commissioner rightly exercised jurisdiction under Section 263. However, the Tribunal did not address any of the contentions raised by the appellant regarding the merits of the issue. Therefore, the High Court set aside the impugned orders and remitted the appeal to the Tribunal with a direction to examine and deal with the merits of the contentions raised by the appellant.

This judgment highlights the importance of proper examination of contentions raised by parties in tax matters. The Tribunal's failure to address the appellant's arguments regarding the merits of the issue led to the High Court remitting the appeal for reconsideration. It underscores the need for thorough analysis and consideration of all relevant aspects before reaching a decision in tax disputes. The judgment serves as a reminder for tribunals to ensure that they adequately address all arguments presented before them to uphold the principles of natural justice and fairness in tax proceedings.