2018 (3) TMI 1899 - AT - Income Tax

Application u/s 158A(1) - multiplicity of proceedings - Reopening of assessment - Deduction under Section 80P(2)(b) - since the issue is identical, which is pending before the Madras High Court and the assessee has also filed the undertaking in a prescribed form as provided under Section 158A - HELD THAT - Issue arises for consideration before this Tribunal in respect of the present appeals, we are satisfied that the issue arising before this Tribunal in the present appeals are identical with the questions of law, which are pending before the High Court for adjudication for the assessment years 1989-90, 1992-93, 1993-94 and 1997-98. Since the assessee filed the declaration agreeing not to raise the questions of law before any other appellate authority and apply the decision that may be rendered by the Madras High Court, this Tribunal is of the considered opinion that the issue raised by the assessee before this Tribunal needs to be kept in abeyance till the disposal of the appeals by the High Court. Very object of the introduction of Section 158A of the Act is to avoid multiplicity of proceedings and to avoid conflicting judicial opinions. Therefore, by accepting the declaration filed by the assessee in Form 8 under Section 158A of the Act, the orders of both the authorities below are set aside and the entire issue raised by the assessee is remitted back to the file of the Assessing Officer. The Assessing Officer shall apply the judgment of Madras High Court that may be rendered in the appeals pending for the assessment years 1989-90, 1992-93, 1993-94 and 1997-98 and shall dispose of the issue in conformity with the judgment of Madras High Court for the assessment years 1989-90, 1992-93, 1993-94 and 1997-98 in the assessee's own case With regard to apprehension made by the Ld. Departmental Representative that the issue of validity of reopening of assessment is not an issue in these appeals, this Tribunal is of the considered opinion that the substantial issue of deduction claimed by the assessee under Section 80P(2)(b) of the Act is identical to that of the issue arises for consideration, therefore, when the questions of law pending before the Madras High Court attains finality, it shall be applied to the assessment years under consideration. Orders of both the authorities below are set aside and the entire issue raised by the assessee is remitted back to the file of the Assessing Officer. Appeals filed by the assessee are allowed for statistical purposes.

Summary

Issues:
- Appeals against orders of Commissioner of Income Tax (Appeals) for multiple assessment years.
- Application under Section 158A(1) of the Income-tax Act, 1961 regarding pending issues before Madras High Court.
- Claim of deduction under Section 80P(2)(b)(i) of the Act.
- Validity of reopening of assessment.
- Interpretation and application of Section 158A of the Act.
- Adjudication of identical questions of law pending before High Court.
- Avoidance of multiplicity of proceedings and conflicting judicial opinions.

Analysis:
1. The appeals were filed against the orders of the Commissioner of Income Tax (Appeals) for various assessment years. The representative for the assessee filed an application under Section 158A(1) of the Income-tax Act, claiming that issues pending before the Madras High Court are similar to those in the present appeals. The High Court was considering matters related to Section 80P(2)(b)(i) of the Act and the reopening of assessments for previous years.

2. The Departmental Representative argued that since the Tribunal previously ruled against the assessee's eligibility for deduction under Section 80P(2)(b) of the Act, the current appeals should be dismissed. However, the assessee's representative contended that the issues were identical to those pending before the High Court, specifically concerning the deduction claim under Section 80P(2)(b) of the Act.

3. The Tribunal examined the provisions of Section 158A of the Act, which allow for the application of decisions on identical legal questions pending before higher courts. The High Court had admitted the assessee's appeals and framed questions of law for adjudication, which were found to be similar to the issues raised in the present appeals. The Tribunal decided to keep the matter in abeyance until the High Court's decision to avoid conflicting opinions.

4. By accepting the declaration filed by the assessee under Section 158A of the Act, the Tribunal set aside the orders of the lower authorities and remitted the issue back to the Assessing Officer. The Assessing Officer was directed to apply the High Court's judgment on similar matters and dispose of the issue accordingly. The Tribunal emphasized the objective of Section 158A to prevent multiple proceedings and conflicting decisions.

5. The Tribunal clarified that once the High Court's decision on the pending appeals for previous years is finalized, it should be applied to the assessment years under consideration. The assessee was instructed not to file further appeals against the Assessing Officer's order once it aligns with the High Court's judgment. Consequently, all appeals filed by the assessee were allowed for statistical purposes.

This detailed analysis of the judgment highlights the key legal issues, the application of relevant legal provisions, and the Tribunal's decision to ensure consistency and efficiency in the resolution of tax matters.