CIT, CHANDIGARH V. M/S PB. ST. CO-OP FEDERATIION OF HOUSING

ITA/688/2008

AI Insights

The case involves an appeal by the Commissioner of Income Tax-II, Chandigarh against the decision of the ITAT, which had remanded the issue of claim of deduction back to the Assessing Officer without addressing the merits of the case. The primary legal contention was whether the ITAT was correct in its approach of remanding the matter without appreciating the merits and the procedural validity of the revised return filed by the assessee, which was beyond the permissible time frame under Section 139(5) of the Income Tax Act, 1961. The High Court criticized the ITAT for not providing any substantive reasoning or findings to support its decision to remand the case, thus setting aside the ITAT's order and directing a fresh examination of the case.

• Counselvise Citation: [2009] 140 COUNSELVISE.COM (IT) 720698 (HC-CHANDIGARH)
• Appeal Type: Others
• Pronouncement Date: 12-08-2009
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Revenue
• Court: HIGH COURT
• Department Lawyers: RAMESH SHARMA
• Assessee Lawyers: URVASHI DHUGGA
• Keywords: Assessment Year; Income Tax; Remand; Revised return; Tribunal
• Section: 139(5); 260-A

Judgement Text

"I.T.A. No. 688 of 2008 (1) IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.A. No. 688 of 2008 DATE OF DECISION: 12.8.2009 Commissioner of Income Tax-II, Chandigarh ..........Appellant Versus M/s Punjab State Cooperative Federation of ..........Respondent Housing Building Societies Ltd., SCO 150-152, Sector 34-A, Chandigarh CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MRS. JUSTICE DAYA CHAUDHARY Present:- Mr. Urvashi Dhugga, Advocate for the appellant. Mr. Ramesh Sharma, Advocate for the respondent. **** ADARSH KUMAR GOEL, J. (Oral) 1. The revenue has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (for short, “the Act”) against the order of Income Tax Appellate Tribunal, Chandigarh Bench-B dated 30.5.2008 passed in ITA No. 700/Chandi/2007 for the assessment year 2003-04, proposing to raise following substantial question of law:- “Whether on the facts and circumstances of the case and in law, the Hon'ble ITAT was correct in sending back the issue of claim of deduction back to the file of the Assessing Officer without appreciating merits of the case and also that no facts have been made out before the Hon'ble Tribunal as to how the return filed on 21.12.2005 (by way of written submission) was bonafide in terms of section 139(5) of the Act as the revised return could not be filed in this case after 31.3.2005? 2. The assessee filed original return and thereafter a revised I.T.A. No. 688 of 2008 (2) return. The revised return was treated as being beyond one year from the end of the relevant assessment year and was thus invalid under Section 139 (5). This view was upheld by the CIT(A). The Tribunal, without commenting upon the validity of the orders of the Assessing Officer or the CIT(A), set aside the said orders and remanded the matter to the Assessing Officer. 3. We have heard learned counsel for the parties. 4. Learned counsel for the revenue submits that the Tribunal in exercise of its appellate powers, could set aside the impugned orders only after recording a finding that such orders were in any way erroneous. 5. Learned counsel for the assessee is unable to show any finding which may have been recorded by the Tribunal that the orders of the Assessing Officer or CIT (A) were erroneous in any manner, much less reasons for such a finding. 6. We are of the view that the order of the Tribunal is perverse and unsustainable in law and beyond its authority. The appeal, thus, involves substantial question of law, as to whether the Tribunal could have set aside the orders of lower authorities without recording any findings or about their correctness. The same question, thus, has to be answered in favour of the revenue. 7. Accordingly, the appeal is allowed, the order of the Tribunal is set aside and the matter is remanded to the Tribunal for fresh decision on merits in accordance with law. The parties may appear before the Tribunal for further proceedings on December 14, 2009. (ADARSH KUMAR GOEL) JUDGE August 12, 2009 (DAYA CHAUDHARY) pooja JUDGE Note:-Whether this case is to be referred to the Reporter .......Yes/No I.T.A. No. 688 of 2008 (3) "