2014 (7) TMI 521 - HC - Income Tax

Dismissal of appeal on technical ground Application for reference - Whether the Tribunal is justified in dismissing the appeal on technical ground considering CBDT instruction dated 9.2.2011 read with Section 268A of the Act Held that - If revenue is of the opinion that this aspect has not been dealt with and considered by the Tribunal, it will be open for the revenue to prefer/submit rectification application and point out what is stated in the present appeal thus, the appeal cannot be entertained Decided against Revenue.

Summary

Issues:
1. Appeal against the judgment and order of the Income Tax Appellate Tribunal.
2. Dismissal of the appeal on a technical ground.
3. Non-consideration of CBDT instruction and authorization by the Tribunal.
4. Possibility of submitting a rectification application.

Analysis:
The judgment pertains to a tax appeal filed against the decision of the Income Tax Appellate Tribunal (hereinafter referred to as "Tribunal") for the Assessment Year 2005-06. The appellant, the Revenue, challenged the impugned order of the Tribunal, raising a substantial question of law regarding the justification of dismissing the appeal on a technical ground. The appellant contended that despite drawing the Tribunal's attention to relevant CBDT instructions and authorization by the CIT, the Tribunal failed to consider these aspects and solely dismissed the appeal based on the tax effect being below the prescribed limit.

The appellant expressed dissatisfaction with the Tribunal's failure to address the specific points raised and requested the Tribunal to consider the appeal on its merits. The judgment highlights that if the appellant believes that the Tribunal overlooked crucial aspects, such as the CBDT instruction and authorization, the appellant has the option to submit a rectification application to bring these issues to the Tribunal's attention for reconsideration.

Ultimately, the High Court decided not to entertain the tax appeal at that stage. The judgment emphasizes that the appellant can submit a rectification application to address the concerns raised, and such an application will be considered in accordance with the law and on its merits. The Court refrained from expressing any opinion on the merits of the case, indicating that the tax appeal was not entertained at that stage and was disposed of accordingly.