2022 (5) TMI 1634 - HC - Income Tax

Revision u/s 263 - period of limitation - HELD THAT - Tribunal has not ventured to consider the facts of the assessees case; more importantly when they have challenged the order passed by the PCIT u/s 263 of the Act firstly on the ground that it is barred by limitation. That apart the appellants had approached this Court and filed a writ petition against the order passed u/s 263 and in the said writ petition the appellants were granted liberty to pursue their remedies against the order dated March 29 2015 by reckoning the date of receipt of such order as on February 29 2016. Therefore the issue would be whether the proceedings are barred by limitation. Thus the appellants ought to have been granted liberty to canvass the issue before the learned Tribunal. More particularly when they have specifically raised the same as one of the grounds in the appeal memorandum filed before the learned Tribunal. The learned Advocate appearing for the appellants would submit that on merits also the appellants have got an excellent case. However since the learned Tribunal has not touched upon the merits of the appellants case we are not inclined to go into the said aspect. As observed by us since we are not going into the merits of the impugned order nor the correctness of the said order of the learned Tribunal we leave it to the Department to canvass all points at the appropriate stage. Thus we are of the considered view that the matter has to be sent back to Tribunal to take a decision on merits and in accordance with law specifically with regard to the grounds canvassed by the appellants before it. The appeal is allowed and the stay application stands closed and the order passed by the learned Tribunal is set aside.

Summary

Issues Involved:
The appeal filed by the assessee u/s 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal for the assessment year 2009-10.

Issue (a):
The Tribunal's failure to consider the time limitation under section 263 of the Act for making orders beyond March 31, 2015, as raised by the appellant.

Issue (b):
The Tribunal's failure to acknowledge the adequacy of the initial enquiry conducted by the Assessing Officer regarding share capital, as argued by the appellant.

Issue (c):
The justification of the Tribunal in upholding the order of the Commissioner of Income Tax regarding the re-assessment order under section 147, despite the specific purpose of the case being escapement of share dealing.

Issue (d):
The Tribunal's justification in upholding the order passed by the Commissioner of Income Tax u/s 263 without specific reasons, based on a general conclusion from a previous case.

Issue (e):
The Tribunal's oversight of the time limitation under section 263 of the Act for making orders, as highlighted by the appellant.

The appellant challenged the order passed by the Principal Commissioner of Income Tax under section 263 of the Act, raising various grounds before the tribunal. The first ground was the time limitation issue, which the tribunal considered along with other cases and dismissed all appeals. The appellant had filed a writ petition regarding the non-service of the order, which was deemed received on a later date. The tribunal, however, did not delve into the merits of the case but relied on previous decisions, leading to the appeal being allowed for further consideration on merits by the tribunal. The matter was remanded to the tribunal for a decision on merits and in accordance with the law, allowing both parties to present their arguments.

The judgment highlights the importance of considering time limitations under the Act, adequacy of previous enquiries, and the necessity for specific justifications in upholding orders. The case emphasizes the need for thorough examination of each issue raised by the appellant before reaching a decision.