2022 (10) TMI 499 - SCH - Income Tax

Grant of benefit under Section 10(20) - as conceded by respondent, that Assessee never claimed the benefit under Section 10(20) and according to the respondent, it was a case of Sections 11 and 12 of the IT Act - HELD THAT - When even respondent/Assessee never claimed the benefit under Section 10(20) of the Income Tax Act, 1961, the High Court is not justified in dismissing the appeals by granting the benefit to the respondent/Assessee under Section 10(20) of the IT Act. Under the circumstances, the impugned judgment and orders passed by the High Court are unsustainable and the matters are to be remanded to the High Court to consider the appeals afresh in accordance with law and on its own merits. The present appeals succeeds. The impugned judgment and orders passed by the High Court are hereby quashed and set aside. The matters are remanded to High Court to consider the appeals afresh.

Summary

Issues:
1. Dismissal of appeals by the High Court based on the benefit granted under Section 10(20) of the Income Tax Act, 1961.
2. Respondent's claim under Sections 11 and 12 of the IT Act.
3. Justification of the High Court's decision in dismissing the appeals.
4. Remand of the matters to the High Court for reconsideration.

Analysis:
The Supreme Court addressed the issue of the High Court's dismissal of the appeals by the Revenue based on the benefit granted to the respondent/Assessee under Section 10(20) of the Income Tax Act, 1961. The Court noted that the respondent had never claimed the benefit under Section 10(20) and instead argued for the applicability of Sections 11 and 12 of the IT Act. The Court found that since the respondent did not claim the benefit under Section 10(20), the High Court's decision to grant such benefit and dismiss the appeals was unjustified. Consequently, the Supreme Court held that the impugned judgment and orders were unsustainable, leading to the matters being remanded to the High Court for fresh consideration in line with the law and on their own merits.

Moreover, the Supreme Court ruled in favor of the Revenue, setting aside the High Court's judgment and orders. The matters were directed to be reconsidered by the High Court within a stipulated period of six months from the date of the present order. The Court allowed the appeals to this extent and declared that no costs were to be imposed in the matter. The judgment emphasized the importance of proper application of the law and the need for a fair and just reconsideration of the appeals by the High Court.