2013 (10) TMI 319 - HC - Income Tax

Additional ground for re-opening of Assessment - DEPB - deduction u/s 80 HHC Held that - In the present case, there are peculiar facts which convince not to carry further inquiries in this respect. Such facts are that the additions deleted by the CIT(Appeals) and which has been confirmed by the Tribunal in the impugned judgment are now squarely covered against the Revenue by a decision of the Supreme Court in the case of Topman Exports v. CIT 2012 (2) TMI 100 - SUPREME COURT OF INDIA - No purpose would be served in entertaining this Tax Appeal Decided against the Revenue.

Summary

Issues:
1. Validity of reopening of assessment.
2. Whether the Departmental Representative was not interested in pressing additional grounds.
3. Quantum additions and the correctness of the CIT(Appeals) decision.

Analysis:
1. The assessment for the year 1997-98 was reopened by the Assessing Officer, leading to certain additions. The Commissioner (Appeals) held the reopening invalid and also found the additions unjustified. The Revenue appealed against this decision. The Tribunal noted that the Departmental Representative did not press the additional ground regarding the validity of the reopening during the hearing. The Tribunal proceeded to uphold the CIT(Appeals) decision to delete the quantum additions.

2. The Revenue contested the Tribunal's stance that the Departmental Representative did not press the additional ground. The Revenue argued that the validity of the reopening was a foundational fact, and without it, the appeal would be incompetent. However, the High Court found peculiar facts in the case. The additions deleted by the CIT(Appeals) were confirmed by the Tribunal and were covered by a Supreme Court decision. The High Court concluded that even if the reopening was upheld, the Revenue's objection to the quantum additions would not stand.

3. The High Court dismissed the Tax Appeal, considering that the additions deleted by the CIT(Appeals) and confirmed by the Tribunal were covered by a Supreme Court decision. The Court found no purpose in entertaining the appeal as the Revenue's objection to the quantum additions would not succeed even if the validity of the reopening was established. Thus, the Tax Appeal was dismissed based on the existing legal position and the specific facts of the case.