2020 (1) TMI 1634 - SCH - Income Tax

Non-allowability of deduction on account of investment in subsidiary company written off - As argrued by Additional Solicitor General, that the Order of the High Court is non-speaking inasmuch as it has not given its own reasons - High Court has only extracted the order of the Tribunal and whole consideration is only reflected in para 5 of the judgment - HELD THAT - From the judgment of the High Court, it is clear that the High Court has not adverted to relevant issues and there does not appear appropriate consideration. We are of the view that ends of justice be served if the matter is heard again by the High Court. In result, the impugned judgment is set aside and Income Tax Appeal 2017 (11) TMI 1864 - RAJASTHAN HIGH COURT is revived on the file of the High Court which may be heard afresh. We make it clear that we have not expressed any opinion on the merits of the case. It is for the High Court to consider and take a decision afresh.

Summary

Issues involved:
Appeal against non-speaking order of High Court, consideration of relevant issues, revival of Income Tax Appeal for fresh hearing by High Court.

Analysis:
The Supreme Court, comprising Hon'ble Mr. Justice Ashok Bhushan and Hon'ble Mr. Justice M.R. Shah, granted leave in the case after hearing learned counsel for both parties. The appeal was against a non-speaking order of the High Court, with the petitioner arguing that the High Court did not provide its own reasons in the order. The Court issued a limited notice and decided to consider whether the case should be sent back to the High Court for reconsideration. The respondent's counsel mentioned that one issue was already decided against the petitioner by the High Court, and another issue was the subject of the current appeal. The Additional Solicitor General contended that the High Court's judgment lacked appropriate consideration of the relevant issues and only extracted the Tribunal's order without proper analysis. The Supreme Court observed that the High Court did not address the relevant issues adequately and set aside the impugned judgment. The Court ordered the revival of Income Tax Appeal No. 291 of 2017 on the High Court's file for a fresh hearing, emphasizing that no opinion on the case's merits was expressed, leaving the decision to the High Court for reconsideration. Ultimately, the civil appeal was allowed by the Supreme Court.