2013 (5) TMI 1040 - HC - Income Tax

Summary

Issues involved: Validity of proceedings under Section 147 of the Income-tax Act, 1961 for assessment year 2001-02.

The judgment pertains to the assessment year 2001-02 and arises from a common order passed by the Tribunal. Initially, the Tribunal upheld the validity of proceedings under Section 147 of the Income-tax Act, 1961, and remanded the matter to the Assessing Officer. However, the High Court later set aside the Tribunal's order, declaring the proceedings under Section 147 to be invalid. Subsequently, the Assessing Officer framed assessments for both years, which were challenged by the assessee before the Commissioner of Income Tax (Appeals) and then the Income Tax Appellate Tribunal. The Tribunal allowed the appeals, considering the earlier invalidation of the Section 147 proceedings by the High Court and the dismissal of the Special Leave Petition by the Supreme Court against the High Court's decision.

The High Court affirmed the Tribunal's decision to allow the appeals filed by the assessee, as the issue of the validity of the Section 147 proceedings had been conclusively settled by the High Court and the Supreme Court. Since the earlier remand proceedings were based on the assumption of the validity of the Section 147 proceedings, which have now been deemed invalid, the remand proceedings hold no significance. Therefore, the High Court found no reason to interfere with the Tribunal's decision and dismissed the appeals, stating that no substantial question of law arises for consideration in this matter.