2015 (2) TMI 1350 - HC - Income Tax

Maintainability of grounds of appeal taken before the tribunal - Tribunal justification in law to hold that the grounds of Appeal Nos.1,2 and 3 taken by the Appellant before the Tribunal, are not maintainable and these do not arise out of the order of the CIT(A), as the CIT(A) had dismissed these grounds in limine.?- HELD THAT - The impugned order of the Tribunal has not dealt with the Appellant's appeal before it with regard to ground Nos. 1, 2 and 3 on the ground that same does not arise out of the order of the Commissioner of Income Tax (Appeals) CIT(A) . The record indicates that the Respondent Assessee's urged these grounds before the CIT(A). Moreover, the CIT(A) also deals with the grounds in his order. Respondent Assessee's are put to notice that on the next occasion, Appeal would be disposed of

Summary

Issues Involved:
Challenge to order of Income Tax Appellate Tribunal for block period 1st April, 1987 to 8th December, 1997. Interpretation of maintainability of grounds of appeal before the Tribunal arising out of the order of the Commissioner of Income Tax (Appeals).

Analysis:
The case involves an appeal under Section 260A of the Income Tax Act, 1961 challenging the order passed by the Income Tax Appellate Tribunal for the block period from 1st April, 1987 to 8th December, 1997. The Appellant has raised a question of law regarding the justification of the Tribunal in holding that certain grounds of appeal taken by the Appellant are not maintainable as they do not arise out of the order of the Commissioner of Income Tax (Appeals). The Tribunal did not address the Appellant's appeal with respect to ground Nos. 1, 2, and 3 on the basis that they do not arise from the CIT(A) order, even though the record shows that the Respondent Assessee had presented these grounds before the CIT(A) and the CIT(A) had considered them in his order.

The High Court noted that the impugned order of the Tribunal did not address the Appellant's appeal concerning ground Nos. 1, 2, and 3, and directed the Respondent Assessee to be informed that on the next occasion, the appeal would be disposed of at the stage of admission itself. The case was adjourned to a future date for further proceedings. The Court's decision indicates a focus on the procedural aspect of the appeal and the requirement for the Tribunal to consider all relevant grounds raised by the parties before making a decision on the appeal.