2022 (7) TMI 1369 - HC - Income Tax

Application for review of the judgment and order passed by the Income Tax Appellate Tribunal - petition Filled under Article 226 and 227 of the Constitution what is prayed is to set aside order 2021 (7) TMI 252 - ITAT AHMEDABAD passed by the Income Tax Appellate Tribunal - Disallowance of head loss in contract account - HELD THAT - While learned senior advocate raised various contentions to urge the court that the review application ought to have been allowed by the Tribunal, he fairly admitted the factum that the department has already preferred appeal under Section 260A of the Income Tax Act against the aforementioned judgment and order of the Tribunal 2017 (1) TMI 671 - ITAT AHMEDABAD The dismissal of the Special Civil Application by this court is only on the ground that the petitioner department has preferred substantive appeal before this court. It goes without saying that all the contentions of the petitioner will be open to be raised in accordance with law in the appeal proceedings.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal in review application.

Analysis:
The petitioner filed a petition under Article 226 and 227 of the Constitution seeking to set aside the order dated 6.7.2021 passed by the Income Tax Appellate Tribunal in Miscellaneous Application No.1520 of 2013. The petitioner claimed Rs.4 crores under the head loss in contract account for the assessment year 2008-09, which was disallowed by the Assessing Officer due to failure to prove genuineness of the transaction. The Commissioner of Income Tax (Appeals) upheld the Assessing Officer's decision. However, the Tribunal later set aside these orders and allowed the claim of the amount under the head of loss in contract account. A review application was filed against this judgment and order of the Tribunal, which was dismissed on 6.7.2021, leading to the current challenge.

The senior advocate representing the petitioner contended that the review application should have been allowed by the Tribunal. It was acknowledged that the department had already filed an appeal under Section 260A of the Income Tax Act against the Tribunal's earlier judgment and order dated 6.12.2016. The High Court dismissed the Special Civil Application on the grounds that the department had initiated substantive appeal proceedings before the court. It was emphasized that all contentions of the petitioner could be raised in the appeal proceedings as per the law. Consequently, the present petition was disposed of by the High Court.

This detailed analysis highlights the legal proceedings surrounding the challenge to the Income Tax Appellate Tribunal's order in the review application. It covers the background of the case, the arguments presented by the petitioner, the acknowledgment of the department's appeal, and the court's decision to dismiss the petition due to the pending substantive appeal.