Chhattisgarh State Power Transmission Company Limited V. Union of India Ministry of Finance, Department of Revenue and Chief Commissioner of Income Tax and Commissioner of Income Tax \\u2013 1 and Deputy Commissioner of Income Tax Circle 4(1)

WA/405/2024

AI Insights

The case involves M/s Chhattisgarh State Power Transmission Company Limited appealing against the dismissal of their writ petition by a Single Judge, which was based on the jurisdictional issue that the appeal should lie before the Division Bench. The original dispute pertains to the assessment order for the financial year 2006-2007, where an income of Rs. 8,40,75,70,697 was assessed under Section 143(3) read with Section 147 of the Income Tax Act, 1961. The appeal to the CIT (Appeals) was initially dismissed, leading to the current proceedings. The court, after considering the submissions, decided to remand the matter back to the CIT (Appeals) for a fresh decision on merits, emphasizing the need for a thorough re-examination of the case due to its prolonged and perennial nature.

• Counselvise Citation: [2024] 140 COUNSELVISE.COM (IT) 813279 (HC-CHHATTISGARH)
• Appeal Type: Others
• Pronouncement Date: 25-07-2024
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Partly Allowed
• Court: HIGH COURT
• Department Lawyers: AJAY KUMRANI
• Assessee Lawyers: JEHANGIR MISTRI; HARSHAL CHAUHAN
• Keywords: Appeal; Assessment; CIT(Appeals); Income Tax; Financial Year 2006-2007
• Section: 147; 143(3)

Judgement Text

"1 NAFR HIGH COURT OF CHHATTISGARH, BILASPUR WA No. 405 of 2024 M/s Chhattisgarh State Power Transmission Company Limited (Erstwhile Chhattisgarh State Electric Board) incorporated under the Companies Act 1956, Having its registered office at Vidyut Sewa Bhawan, Danganiya, P.S and P.O. Danganiya, Raipur (C.G.), through Manager, (F & A) (Authorised Officer) Shri Rajesh Kumar Tanti, S/o Shri L.P. Tanti, Manager (F & A) R/o Room No. 21, Ground Floor, Vidyut Sewa Bhawan, Danganiya, District: Raipur (C.G.) ---- Appellant Versus 1. Union of India Ministry of Finance, (Department of Revenue) Through Secretary, New Delhi 2. The Chief Commissioner of Income Tax Aykar Bhawan, Civil Lines Raipur (C.G.) 3. Commissioner of Income Tax – 1, Aaykar Bhawan, Civil Lines, Raipur (C.G.) 4. Deputy Commissioner of Income Tax Circle 4(1), Aaykar Bhawan, Civil Lines, Raipur (C.G.) ---- Respondents For Applicant : Mr. Jehangir D. Mistri, Senior Advocate (through Video Conferencing) with Mr. Harshal Chauhan, Advocate. For Respondent Nos. 2 to 4 : Mr. Ajay Kumrani, Advocate on behalf of Mr. Amit Chaudhari, Advocate 2 Hon’ble Shri Justice Goutam Bhaduri J. Hon’ble Shri Justice Radhakishan Agrawal, J. Judgment on Board Per, Goutam Bhaduri Judge 25.07.2024 1. The present appeal is against the judgment dated 10.04.2024 passed by the learned Single Judge, wherein, against the order of the Income Tax Appellate Tribunal dated 25.09.2023, the writ petition was dismissed on the ground that the appeal would lie before the Division Bench. 2. At the outset, it has been submitted that since the issue pertains to assessment of financial year 2006-2007 and initially disallowance was made by the Revenue and in the year 2008 assessment order under Section 143 (3) read with Section 147 of the Income Tax Act, 1961 was passed and assessed income was arrived at Rs. 8,40,75,70,697/-. Subsequently, it was subject of challenge before CIT (Appeals) and CIT (Appeals) disposed of the appeal under Section 143 (3) of the Act by holding that Order under Section 143 of the Act no longer exists and the original appeal was dismissed. 3. Before the issue has been deliberated upon the merits on various count, the proposal was mooted that since the issue pertains to the Financial Year 2006-2007, the CIT (Appeals) may adjudicate the issue after giving the opportunity of hearing to the parties and so that the issue be settled at rest, as it is perineal in nature. It is further 3 submitted that at this stage, if the respondent agrees to the fact, the appeal may be adjudicated afresh by the CIT (Appeals) which was disposed of in the year 2009, the adjudication would take place on merits and they would not deliberate the issue here. 4. The case was taken up after some time. 5. Learned counsel for the respondents on instructions would submit, they are ready to accept the proposal and the CIT (Appeal), therefore, may adjudicate the original issue i.e. the appeal under Section 143 (3) giving opportunity of hearing to both the parties. 6. Accordingly, in such state of affair, without further deliberation, we are inclined to send back the parties to CIT (Appeals) to adjudicate the appeal afresh against the order dated 29.11.2007 passed under Order 143 (3) of the Income Tax Act, 1961. 7. It is hereby directed that the appeal may be disposed of within a further period of 5 months and if possible, the parties shall reconstruct the file as the considerable time has passed and shall file the same within a further period of four weeks. Sd/- Sd/- (Goutam Bhaduri) (Radhakishan Agrawal) JUDGE JUDGE Saurabh "