2014 (3) TMI 471 - HC - Income Tax

Validity of assessment order of the Tribunal Held that - The order of the Tribunal is cryptic - The Tribunal has not considered the case independently on merits, as against the order passed by the Assessing Officer - The Tribunal whether or not it agreed with the reasons of the Assessing Officer, ought to have recorded its reasons and considered the matter independently in the light of relevant provisions of the Income Tax Act, 1961 thus, the matter is remitted back to the Tribunal Decided in favour of Assessee.

Summary

Issues:
1. Appeal against the order of the Income Tax Appellate Tribunal.
2. Dismissal of appeals by the Appellate Authority.
3. Lack of independent consideration by the Tribunal.
4. Remand of the appeals for fresh consideration.
5. Directions for expeditious disposal by the Tribunal.

Analysis:
1. The High Court heard the appeals directed against the order of the Income Tax Appellate Tribunal, which remanded the matter back to the Assessing Officer for fresh consideration based on certain observations made in the assessment orders for the years 2002-03 and 2003-04.

2. The appeals before the Tribunal were filed against the order passed by the Appellate Authority, which had dismissed the appeals filed by the respondent-assessee against the assessment orders for the mentioned years. The High Court noted that the Tribunal's order was cryptic and lacked independent consideration of the case on merits.

3. The High Court observed that the Tribunal did not consider the case independently against the order passed by the Assessing Officer. It was emphasized that the Tribunal should have recorded its reasons and evaluated the matter in light of the relevant provisions of the Income Tax Act, 1961. Consequently, the High Court, upon agreement by the counsels, decided to remand the appeals back to the Tribunal for fresh consideration.

4. The High Court set aside the Tribunal's order and restored the appeals for fresh consideration. It directed the Tribunal to dispose of the appeals expeditiously, preferably within four months, and to pass a speaking order on the merits of the case. The Tribunal was instructed to address the substantial questions of law formulated in the memorandum of appeal and ensure that all contentions of the parties are kept open.

5. Furthermore, the High Court instructed that no coercive action should be taken against the assessee by the Assessing Officer until the appeals are disposed of by the Tribunal. The appeals were disposed of without any costs, and the directions for expeditious disposal were reiterated to ensure a timely resolution of the matter.