2019 (7) TMI 519 - HC - Income Tax

Tribunal dismissing the appeal of the revenue - roving inquiry - set-aside matter is pending with the Commissioner of Central Excise for fresh adjudication and findings of the Central Excise department regarding under invoicing is not negated or quashed till dated by any higher appellate authority - HELD THAT - No error not to speak of any error of law could be said to have been committed by the Tribunal in dismissing the appeal filed by the Revenue. The question proposed cannot be termed as a question of law much less a substantial question of law in view that no error could be said to have been committed by the Tribunal. There is no substantial question of law involved in this Tax Appeal.

Summary

Issues:
Appeal under Section 260-A of the Income Tax Act, 1961 against the order passed by the Appellate Tribunal dated 26.09.2018 for the Assessment Year 2002-03. The substantial question of law proposed by the Revenue regarding the dismissal of the appeal and the handling of the set-aside matter pending with the Commissioner of Central Excise for fresh adjudication.

Analysis:
The Tax Appeal was filed by the Revenue against the order of the Appellate Tribunal for the Assessment Year 2002-03. The substantial question of law proposed by the Revenue questioned the Tribunal's dismissal of the appeal, particularly in light of the pending matter with the Commissioner of Central Excise for fresh adjudication. The Tribunal had remitted the issue back to the authorities due to lack of concrete evidence brought forward by the Revenue. The Tribunal highlighted that no further steps had been taken by the Revenue for over nine years, and no conclusive material was presented to impose any liability on the assessee. The Tribunal emphasized that a roving inquiry without substantial evidence cannot be allowed indefinitely. The Tribunal refused to remit the issue for re-investigation as no new material was brought forth by the Revenue even after the order of the CIT(A) in 2010.

Upon hearing the arguments and considering the evidence recorded by the Tribunal, the High Court found that no error or error of law was committed by the Tribunal in dismissing the Revenue's appeal. The High Court concluded that the proposed question of law did not amount to a substantial question of law as no error was found in the Tribunal's decision. Therefore, the High Court held that there was no substantial question of law involved in the Tax Appeal, leading to the dismissal of the appeal by the Revenue.

In conclusion, the High Court upheld the decision of the Tribunal and dismissed the appeal filed by the Revenue. The Court found no error or substantial question of law in the Tribunal's decision to warrant a different outcome.