The Commissioner of Income-tax V. Prince Mukarram Jah Trust for Education AND Learning,

RC/215/1996

AI Insights

The case revolves around the Income Tax Appellate Tribunal's (I.T.A.T.) decision to set aside certain assessment orders made under Section 263 of the Income-Tax Act, 1961, concerning the property known as 'Kothi Asafia'. The assessments for the years 1982-83 and 1983-84 were initially completed accepting the income as NIL. However, subsequent revisional assessments under Section 263 by the Commissioner of Income-Tax (Appeals-I) were contested. The Tribunal's decision to set aside these revisional assessments was challenged by the Department, leading to the present Referred Case. The High Court, having previously confirmed the original assessments in favor of the assessee, found the questions raised in this case to be academic and thus did not address them substantively.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 719012 (HC-ANDHRA_PRADESH)
• Appeal Type: Others
• Pronouncement Date: 04-02-2014
• Assessment Year: misc
• Laws Referred To: Income-Tax Act, 1961
• Result in Favour of: Respondent
• Court: HIGH COURT
• Keywords: Assessment orders; Income tax appellate tribunal; Infructuous; Revisional powers; Kothi Asafia
• Section: 143(3); 263

Judgement Text

"HON’BLE SRI JUSTICE G. CHANDRAIAH & HON’BLE SRI JUSTICE CHALLA KODANDA RAM R.C. No.215 of 1996 JUDGMENT:- ( per Hon’ble Sri Justice Challa Kodanda Ram) At instance of the Revenue, below mentioned common questions of law, which arise from the Order dated 29.09.1995 of the Tribunal in I.T.A.Nos. 1951 & 52/Hyd/92 for the assessment years 1982-83 to 1983-84, have been referred for the opinion of this Court. 1. “Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was correct in law in treating the assessments made on 20.03.1989 as infructuous when the assessments were completed well before the Tribunal order dated 26.06.1992? 2. Whether on the facts and in the circumstances of the case, the I.T.A.T. was correct in canceling the assessments made under Section 143(3) read with Section 263 as infructuous in spite of the fact that the I.T.A.T. referred the cancellation of the order of the C.I.T. passed under Section 263 to the A.P. High Court for their opinion?” From the statement of the case it is to be noted that for the assessment years 1982-83 and 1983-84 assessments were completed accepting income as NIL. Thereafter, the Commissioner of Income-Tax (Appeals-I), in exercise of his revisional powers under Section 263 of the Income-Tax Act, 1961 (for short “the Act”) had passed assessment orders on 19.03.1987 and 21.10.1987. Assessee carried the matter in appeal both with respect to the original assessment and against the assessments made under Section 263 of the Act. So far as the regular assessments are concerned, the Tribunal had accepted the original assessments. Assessments made under Section 263 of the Act with respect to the property known as “Kothi Asafia” were set aside. When the matter was referred in R.C.No. 53 of 1993, this Court, by order dated 27.09.2013, answered the following questions of law 1 and 2 1) Whether on the facts and in the circumstances of the case, the I.T.A.T. is justified in setting aside the orders passed by the C.I.T., Andhra Pradesh-I, under Section 263 of the Act, consequently restoring the original assessment orders, thereby rejecting the stand of the department to assess the capital gains chargeable to tax arising out of the compensation amount of Rs.30,19,257/- awarded by the State Government on 04.02.1983 for the compulsory acquisition of the property known as “Kothi Asafia” on 23.09.1981? 2) Whether on the facts and in the circumstances of the case, the I.T.A.T. should not have interpreted that the settler of the trust also being the accountable person of the late Nizam had enured the benefit of the reduction in Estate Duty liability of the late Nizam to the extent of the compensation amount awarded consequently attracting the provisions of Sec.13(1)(c) read with Sec.13(3) of the Income-tax Act.?” in favour of the assessee and thereby confirming the original assessments subject to variation made by the Tribunal. The present R.C.No. 215 of 1996 relates to the orders of the Tribunal setting aside the assessment order made with respect to the property “Kothi Asafia” under Section 263 of the Act. Inasmuch as the original assessments, which have been restored, having been confirmed by the Tribunal, the Tribunal held the appeals filed by the Department before the Tribunal setting aside the revisional assessment orders passed under Section 263 of the Act as infructuous. As against those orders, the Department had filed the present Referred Case raising the questions referred to in paragraph No.1 above. Inasmuch as the original orders stands confirmed by virtue of answering the questions in favour of the assessee in R.C.No. 53 of 1993, we do not feel it necessary to answer the questions raised in the present case as they are only academic questions. Hence, we decline to answer the questions. Accordingly, Referred Case is dismissed. No order as to costs. As a sequel to the dismissal of the Referred Case, Miscellaneous Petitions, if any pending, shall stand disposed of as infructuous. _______________ G. CHANDRAIAH, J 04-02-2014 ____________________ CHALLA KODANDA RAM, J bcj "