2014 (1) TMI 142 - HC - Income Tax

Validity of power exercised by CIT u/s 263 - Held that - The present appeal under section 260A is directed against the order of the Tribunal dated 15 July 2003 allowing the appeal of the assessee against the order passed by the Commissioner under section 263 on 22 March 1999 - Following the order of the Commissioner dated 22 March 1999, a fresh order of assessment was passed on 29 March 2001 against which the appeal of the assessee was allowed on 12 April 2002 - Following this the departmental appeal was dismissed by the Tribunal on 12 October 2007. The order of the Tribunal has attained finality - In any event, the order of the Commissioner under section 263 has been duly worked out and nothing further would survive in the present appeal by the revenue - No substantial question of law ha arised - Decided against Revenue.

Summary

Issues:
- Appeal by revenue under section 260-A of the Income Tax Act, 1961 against the judgment and order of the Income Tax Appellate Tribunal, Lucknow Bench dated 15 July 2003 for Assessment Year 1994-95.
- Three questions of law framed by the revenue regarding the addition under Section 68 of the Income Tax Act, 1961.

Analysis:
1. The appeal by the revenue under section 260-A of the Income Tax Act, 1961 was against the judgment and order of the Income Tax Appellate Tribunal, Lucknow Bench dated 15 July 2003 for Assessment Year 1994-95. The three questions of law framed by the revenue pertained to the Assessing Officer's obligation to make an addition under Section 68 of the Income Tax Act, 1961, despite evidence of possession and the validity of the assessment order without such addition under section 263 of the Act.

2. The facts of the case revealed that an order of assessment was initially passed on 27 March 1997 under section 144 of the Income Tax Act, 1961, which was later revised by the CIT (A) on 15 December 1998. Subsequently, the Commissioner exercised jurisdiction under section 263 in respect of the original assessment order on 22 March 1999. The ITAT allowed the appeal against the Commissioner's order on 15 March 2003, leading to the current appeal under section 260-A.

3. A fresh order of assessment was passed on 29 March 2001, incorporating directions from the Commissioner's order dated 22 March 1999. The Assessing Officer made additions under section 68 for deposits, interest on deposits, and other expenses. The assessee appealed, and the CIT (A) allowed the appeal by deleting the additions on 12 April 2002. The revenue's appeal before the Tribunal was dismissed on 12 October 2007, with no further appeal filed under section 260-A.

4. The High Court noted that the order of the Tribunal dated 15 July 2003 had already resolved the issues raised by the Commissioner's order under section 263, and subsequent developments had finalized the matter. Consequently, the questions of law framed by the revenue were deemed to be no longer relevant for consideration, leading to the disposal of the appeal without costs.

In conclusion, the High Court disposed of the appeal by the revenue under section 260-A of the Income Tax Act, 1961, as the issues raised had been effectively addressed in previous judgments and subsequent developments, rendering the questions of law moot and no longer requiring consideration.