Case Note & Summary
The Principal Commissioner of Income Tax, Central-3, filed a Miscellaneous Application No. 680 of 2023 in Civil Appeal No. 6580 of 2021 before the Supreme Court of India. The Revenue sought clarification that the waiver of limitation under Section 150(2) of the Income Tax Act, 1961 should be read with respect to the date of issue of notice for reassessment under Section 148, and that if on the date the assessment under Section 153A or 153C was passed, a notice under Section 148 could have been issued as per the law then in force, then fresh proceedings for reassessment of income not arising from incriminating material found in search could be initiated. The Revenue also sought clarification that the findings in paragraphs 11 and 14 of the judgment would apply to all pending proceedings, and that the Assessing Officer may initiate fresh proceedings within 60 days from the date of disposal of the application following the procedure under Sections 147-151 of the Act. The Supreme Court, after going through the averments and prayers, opined that the prayers sought are in the form of review which requires detailed consideration at length looking into the importance of the matter. Consequently, the Court did not entertain the application for clarification and relegated the Revenue to file an appropriate review application for the relief sought in the present application.
Headnote
A) Civil Procedure - Clarification vs Review - Miscellaneous Application - The Revenue filed an application seeking clarification on the scope of waiver of limitation under Section 150(2) of the Income Tax Act, 1961 and for directions to initiate fresh reassessment proceedings. The Supreme Court held that the prayers sought are in the form of review which requires detailed consideration at length, and therefore the application for clarification is not entertained. The Revenue is relegated to file an appropriate review application for the relief sought. (Paras 1-2)
Issue of Consideration
Whether the prayers in the miscellaneous application seeking clarification on the scope of waiver of limitation under Section 150(2) and initiation of fresh reassessment proceedings can be entertained as a clarification or amount to a review requiring detailed consideration.
Final Decision
The Supreme Court held that the prayers sought are in the form of review which requires detailed consideration at length. Therefore, the application for clarification is not entertained, and the Revenue is relegated to file an appropriate review application for the relief sought.
Law Points
- Clarification application cannot be used to circumvent review procedure
- Revenue must file review application for relief sought
Case Details
Miscellaneous Application No. 680 of 2023 in Civil Appeal No. 6580 of 2021
Principal Commissioner of Income Tax, Central-3
Abhisar Buildwell P. Ltd.
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Nature of Litigation
Miscellaneous application seeking clarification of a previous judgment in an income tax reassessment case.
Remedy Sought
The Revenue sought clarification on the scope of waiver of limitation under Section 150(2) and for directions to initiate fresh reassessment proceedings for income not arising from incriminating material found in search.
Filing Reason
The Revenue wanted to clarify that the waiver of limitation under Section 150(2) should be read with respect to the date of issue of notice under Section 148, and that fresh reassessment proceedings could be initiated for income not arising from incriminating material.
Previous Decisions
The Supreme Court had previously dismissed the Revenue's appeals in respect of assessments under Sections 153A and 153C in the absence of incriminating material found during search.
Issues
Whether the prayers in the miscellaneous application seeking clarification on the scope of waiver of limitation under Section 150(2) and initiation of fresh reassessment proceedings can be entertained as a clarification or amount to a review requiring detailed consideration.
Submissions/Arguments
Revenue sought clarification that the waiver of limitation under Section 150(2) should be read with respect to the date of issue of notice under Section 148, and that fresh reassessment proceedings could be initiated for income not arising from incriminating material.
Ratio Decidendi
A clarification application that seeks relief which amounts to a review of the judgment cannot be entertained; the proper remedy is to file a review application.
Judgment Excerpts
Having gone through the averments made in the application and the prayers, we are of the opinion that the prayers sought can be said to be in the form of review which requires detail consideration at length looking into the importance of the matter.
Therefore, the present application in the form of clarification is not entertained and we relegate the Revenue to file an appropriate review application for the relief sought in the present application and as and when such review application is filed, the same may be considered in accordance with law and on its own merits.
Procedural History
The Revenue filed Miscellaneous Application No. 680 of 2023 in Civil Appeal No. 6580 of 2021 seeking clarification of a previous judgment. The Supreme Court dismissed the application as it amounted to a review, and directed the Revenue to file a review application.
Acts & Sections
- Income Tax Act, 1961: 147, 148, 150, 150(2), 151, 153A, 153C
