2020 (1) TMI 1677 - HC - Income Tax

Addition of income - non discharge of liability with regard to the purchase by the appellant from M/s.Mars Export and added 16.5 Crores as additional income - Though the appellant has filed assessment, taking note of the discharge of the liability in respect of the property purchased assessment officer added 16.5 Crores as income - HELD THAT - As brought to the notice of this Court that in assessee's own case 2018 (12) TMI 1595 - MADRAS HIGH COURT , this Court had set aside the common order passed by the Income Tax Appellate Tribunal and remanded the matter to the Tribunal. Following above the order of the Appellate Tribunal is set aside and the matter is remanded back to the ITAT to consider the case afresh after hearing the parties along with other cases.

Summary

Issues:
Appeal against Income Tax Appellate Tribunal's order regarding discharge of liability in property purchase from M/s.Mars Export and addition of 16.5 Crores as income for assessment year 2010-11.

Analysis:
The appellant filed a tax case appeal against the Income Tax Appellate Tribunal's order dated 13.06.2018, specifically challenging the addition of 16.5 Crores as income due to the discharge of liability concerning a property purchase from M/s.Mars Export for the assessment year 2010-11. The Commissioner of Income Tax (Appeals) confirmed the assessment order, leading to the appellant's appeal before the Tribunal. Despite filing a bunch of appeals covering various issues, the appellant did not raise the specific issue related to the discharge of liability, prompting the present appeal.

The Court admitted the appeal based on substantial questions of law, focusing on the Tribunal's alleged failure to consider facts and documents submitted by the appellant in defense before the Commissioner of Income Tax (Appeal) and the Assessing Officer. The questions also addressed the Tribunal's confirmation of the Commissioner's order without proper evaluation of the materials and evidence available. Notably, in a previous case involving the same appellant, the Court had set aside the Tribunal's order and remanded the matter for reconsideration, emphasizing the need for a thorough review of the issues.

In line with the previous judgment, the Court set aside the Appellate Tribunal's order and remanded the case back to the ITAT for a fresh consideration after hearing all parties involved. The appellant was directed to cooperate fully with the Tribunal and present all relevant matters without seeking adjournments. Consequently, the Tax Case Appeal was disposed of with the mentioned directions, and no costs were awarded in this matter.