2013 (10) TMI 876 - SC - Income Tax

Modification application to modify the grounds of appeal Held that - At that juncture, the court shall address to the issue whether a substantial question of law as sought to be introduced by way of amendments could have been incorporated in the appeal which has been preferred by the revenue and pending before the High Court without assailing the other judgment of the Income Tax Appellate Tribunal - Once an amendment is allowed by way of an interim measure, his opposition that no appeal has been preferred against the judgments of Income Tax Appellate Tribunal, would become frustrated Hence, modified the order of High Court Decided in favor of Assessee.

Summary

Issues:
1. Validity of amending the memorandum of appeal to include a ground pertaining to a judgment passed in another appeal.
2. Consideration of whether a substantial question of law can be incorporated through an amendment in an appeal without challenging the other judgment of the tribunal.
3. Modification of the order to address the issue at the time of the concerned appeal hearing.

Detailed Analysis:
The Supreme Court granted leave in both special leave petitions challenging the interim order dated 11.2.2013 in ITA Nos. 1394-1395 of 2006. The appellant argued that amending the memorandum of appeal to include a ground related to a judgment from another appeal, where no appeal was filed by the revenue, was legally impermissible. On the contrary, the respondents supported the tribunal's order. After hearing both parties, the Court decided to modify the order. The Court ruled that the amendment for incorporation of a substantial question of law should be considered during the hearing of the concerned appeal. The Court clarified that the issue of incorporating such an amendment without challenging the other tribunal's judgment would be addressed during the appeal hearing. The Court also addressed the appellant's concern that allowing the amendment might render the opposition regarding the lack of appeal against both tribunal judgments futile. Therefore, the Court modified the High Court's order accordingly. The appeals were disposed of with no costs awarded.