2017 (11) TMI 1485 - HC - Income Tax

Challenging order passed under Section 264 - since the petitioner was still contesting the additions in the earlier years, they cannot delete those incomes in the assessment years 2003-2004 - petition under Section 154 to rectify the assessment by deleting these amounts with an assurance that in case, they succeed in the Tax Case Appeal pending before this Court for the year 2000-2001 - Held that - In so far as the relevant assessment year is concerned, viz., 2003-2004, Hon ble Division Bench, by common Judgment in Rohini Holdings (P) Ltd., V. Commissioner of Income Tax 2011 (8) TMI 700 - MADRAS HIGH COURT , allowed the said appeal and the operative portion of the Judgment reads as follows 28.In the light of the abovesaid fact, the Tribunal s order as regards the assessment for the asst. yr. 2003-04 in respect of the appeal in Tax Case No.704 of 2009 is set aside and the same is allowed in part, with a direction to the AO to redo the same, taking note that the interest income at ₹ 52.50 lakhs has to be assessed under each of the assessment year starting from 2000-01 onwards. Thus, the Assessing Officer has to implement the Judgment rendered and the impugned order in this writ petition will not come in the way of the Assessing Officer implementing the direction issued by the Division Bench. Thus, the challenge to the impugned proceedings has become academic

Summary

Issues:
1. Challenge to order passed under Section 264 of the Income Tax Act, 1961.
2. Dismissal of revision petition by the 1st respondent.
3. Implementation of judgment in Tax Case (Appeal) No. 704 of 2009 by the Assessing Officer.

Analysis:

1. The petitioner filed a writ petition challenging the order passed by the 1st respondent under Section 264 of the Income Tax Act, 1961. The petitioner contended that the Assessing Officer observed that since the petitioner was still contesting additions in earlier years, those incomes cannot be deleted in the assessment years 2003-2004. The petitioner filed a petition under Section 154 to rectify the assessment by deleting the amounts, with an assurance that if successful in a pending Tax Case Appeal for the year 2000-2001, they would not object to subsequent revisions. Despite this, the Assessing Officer rejected the rectification application, leading to the filing of a revision petition under Section 264, which was dismissed by the impugned order.

2. During the pendency of the writ petition, the petitioner had filed various Tax Case Appeals before the Division Bench. In one such appeal, the Division Bench allowed the appeal for the assessment year 2003-2004, directing the Assessing Officer to redo the assessment and include interest income for each assessment year starting from 2000-01 onwards. Consequently, the impugned order challenging the Section 264 proceedings became academic as the Assessing Officer was required to implement the Division Bench's judgment.

3. The High Court observed that the Assessing Officer must implement the judgment rendered by the Division Bench in Tax Case (Appeal) No. 704 of 2009. Therefore, the challenge to the impugned Section 264 proceedings was deemed unnecessary as the direction issued by the Division Bench superseded the need for further action based on the initial order. The writ petition was disposed of with this observation, and no costs were awarded, with the connected miscellaneous petition being closed.