2013 (10) TMI 659 - HC - Income Tax

Maintainability of the Appeal Question of Law Low Tax Effect - Held that - There is no specific discussion in the order of the tribunal - It is impossible from the appeal paper book to ascertain the actual nature of the controversy and how the questions of law have arisen - appeal dismissed on the ground of low tax effect - it is not possible to ascertain the issues and facts on the basis of appeal paper book Decided against Revenue.

Summary

Issues:
1. Whether the ITAT was correct in confirming the deletion of certain additions made by the Assessing Officer?
2. Whether the ITAT's order was perverse on facts regarding the lack of evidence to support the impugned additions?
3. Whether the ITAT failed to consider the annexure enclosed by the assessing officer in the assessment order?

Analysis:
1. The respondent-assessee, a foreign national and an employee of a company, was subjected to search and seizure operations under the Income Tax Act. The assessment order noted the respondent's claim of being a resident but not an ordinary resident, with salary payments made in pounds and perquisites valued separately at Rs.45,948 and taxed accordingly.

2. The Commissioner of Income Tax (Appeals) deleted the addition of Rs.4,13,148 related to overtime/overheads but affirmed the taxation of perquisites, directing a recalculation. The tribunal's order lacked specific discussion, making it difficult to ascertain the actual controversy and the basis for the questions of law raised.

3. The court highlighted that previous appeals by the Revenue were dismissed due to low tax effect, with subsequent review applications also rejected. The tribunal's order in the present appeal similarly dismissed appeals by the Revenue in other cases. However, the court expressed difficulty in understanding the issues and facts based on the appeal paper book, leading to the inability to address the questions of law raised, ultimately disposing of the appeal without providing specific answers.