Commissioner of Income Tex Ap Hyd. v. v.Rajiv Hyd
Case brief
What is this about?
The Supreme Court addressed a reference from the Income Tax Appellate Tribunal regarding the correctness of an order revoking a Section 143(1) assessment and the consequent appeal. The Court noted the minimal tax impact was less than Rs. 8,000 and the matter did not mandate adjudication under Section 268A, declining to answer the legal questions.
What did the court decide?
Both questions of law raised in the reference were declined to be answered due to the lack of necessity for adjudication.
What the court decided
HON'BLE SRI JUSTICE L.NARASIMHA REDDY
AND
HON’BLE SRI JUSTICE CHALLA KODANDA RAM
REFERRED CASE No.171 OF 2000
ORDER:- (per Hon’ble Sri Justice L. Narasimha Reddy)
This reference is made by the Hyderabad Bench-B of the Income Tax Appellate Tribunal through order dated 03.11.1998 in R.A.No.358/Hyd/1994 in I.T.A.No.923/Hyd/1991, at the instance of the revenue.
2) The facts in brief are that M/s. R.C.R Trust, and G.V. Family Trust, filed separate returns for the assessment year 1988-89 showing the income of the respondent from the trusts. The respondent in turn, filed a separate return showing his income from other sources.
3) Since all the three returns are in respect of the respondent, the Income Tax Officer has chosen to process the returns that reflected the income from the trust under Section 143(1) of the Income Tax Act (for short, “the Act”) and passed an order dated 25.10.1988. The Commissioner of the Income Tax however scrutinized the assessment order and took the view that the assessment ought to have been comprehensive in respect of all the three returns by clubbing together. Accordingly, he passed an order dated 21.3.1991, in exercise of the provisions under Section 263 of the Act.
Issues for consideration
3 issues framed by the court
Whether the ITAT was correct in canceling the order under Section 263 holding that the order under Section 143(1) was neither erroneous nor prejudicial to the revenue interests?
Whether the ITAT was correct in canceling the Section 263 order and allowing the appeal of the assessee?
Whether adjudication on the reference questions warranted given the minimal tax impact?
Coram
L. Narasimha Reddy
Challa Kodanda Ram
Case details
As recorded by the court registry
- Court
- Telangana HC
- Decided on
- · June
- Registered
- Case no.
- RC/171/2000
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