2019 (1) TMI 114 - HC - Income Tax

Dismissal of appeal by Tribunal by merely recording that it accepts the view of the (CIT) Appeals - Held that - Tribunal has not given any independent reasons showing consideration of the submissions made on behalf of the assessee. We are conscious of the fact that an appellate order which affirms the order of the lower authority need not be a very detailed order, nevertheless, there should be some indication in the order passed by the appellate authority, of due application of mind to the contentions raised by the asseseee in the context of findings of the lower authority which were the subject matter of the challenge before it. The interest of justice would be served if the impugned order is quashed and set aside and the appeals are restored to the Tribunal for fresh consideration.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal under Section 260 A of the Income Tax Act, 1961 for Assessment Years 2003-04 and 2004-05.

Analysis:
The High Court of Bombay, comprising Mr. Akil Kureshi and Mr. M.S. Sanklecha, JJ., addressed the appeal challenging the order of the Income Tax Appellate Tribunal dated 21.1.2015. The impugned order was a common order concerning the appellant and her son. The main issue raised was whether the Tribunal was justified in dismissing the assessee's appeal by merely accepting the view of the CIT Appeals without providing independent reasons. The Court noted that the Tribunal did not provide any independent reasoning or consideration of the submissions made on behalf of the assessee. While acknowledging that an appellate order affirming the lower authority's decision need not be detailed, the Court emphasized the need for some indication of due application of mind by the appellate authority. Consequently, the Court quashed and set aside the impugned order, restoring both appeals to the Tribunal for fresh consideration. Both appeals were allowed by way of remand, with all contentions being kept open for further review and deliberation.