Case Note & Summary
The petitioner, Prathibha Jewellery House, a partnership firm represented by its partner Sri S N Sharath Kumar, filed writ petitions under Articles 226 and 227 of the Constitution of India challenging the order dated 11.2.2015 passed by the Commissioner of Income Tax (Appeals) [CIT(A)] in pursuance of a remand order by the Income Tax Appellate Tribunal (ITAT) dated 21.11.2014 for the Assessment Years 2005-2006 to 2011-2012. The assessee sought to quash the CIT(A) order and the assessment orders passed for AYs 2005-06 to 2010-11, arguing that the initiation of proceedings under Section 153A of the Income Tax Act, 1961 was without jurisdiction as the mandatory conditions had not been complied with. The High Court noted that the ITAT had already decided the earlier appeals filed by the assessee and remanded the case back to CIT(A) with specific directions. The assessee did not challenge the ITAT's remand order. The court observed that the assessee was now challenging the order passed by CIT(A) in compliance with the ITAT's directions. The court found no merit in the petition and dismissed it, holding that the initiation of proceedings under Section 153A was valid. The judgment was delivered by Dr. Justice Vineet Kothari on 7th November 2017.
Headnote
A) Income Tax - Reassessment under Section 153A - Validity of Initiation - Section 153A, Income Tax Act, 1961 - The assessee challenged the order of CIT(A) upholding the assessment order for AYs 2005-06 to 2010-11, contending that the initiation of proceedings under Section 153A was without jurisdiction as mandatory conditions were not complied with. The High Court held that the ITAT had already remanded the matter to CIT(A) with directions, and the assessee had not challenged the remand order. The court found no merit in the petition and dismissed it, upholding the validity of the proceedings. (Paras 1-3)
Issue of Consideration
Whether the initiation of proceedings under Section 153A of the Income Tax Act, 1961 was without jurisdiction as the mandatory conditions were not complied with.
Final Decision
The High Court dismissed the writ petitions, finding no merit in the challenge to the initiation of proceedings under Section 153A.
Law Points
- Validity of reassessment under Section 153A
- Income Tax Act
- 1961
- Conditions for initiation of proceedings under Section 153A
- Scope of writ jurisdiction under Articles 226 and 227 of Constitution of India
Case Details
2017 LawText (KAR) (11) 3
W.P.Nos.24646 – 24651 OF 2015(T-IT)
Dr. Justice Vineet Kothari
Mr. A Shankar (for petitioner), Mr. K.V. Aravind (for respondents)
Prathibha Jewellery House
The Commissioner of Income Tax (Appeals), The Commissioner of Income-Tax, The Deputy Commissioner of Income-Tax
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Nature of Litigation
Writ petition challenging the order of CIT(A) passed pursuant to remand by ITAT, upholding assessment orders under Section 153A of the Income Tax Act.
Remedy Sought
Quashing of the order dated 11.2.2015 passed by CIT(A) and the assessment orders for AYs 2005-06 to 2010-11.
Filing Reason
The assessee contended that the initiation of proceedings under Section 153A was without jurisdiction as mandatory conditions were not complied with.
Previous Decisions
ITAT had earlier decided appeals filed by the assessee and remanded the case to CIT(A) with directions on 21.11.2014.
Issues
Whether the initiation of proceedings under Section 153A of the Income Tax Act, 1961 was without jurisdiction.
Submissions/Arguments
The assessee argued that the initiation of proceedings under Section 153A was without jurisdiction as mandatory conditions were not complied with.
The revenue opposed the petition, supporting the orders passed.
Ratio Decidendi
The initiation of proceedings under Section 153A of the Income Tax Act, 1961 was valid as the ITAT had already remanded the matter and the assessee did not challenge the remand order. The court upheld the orders passed by the authorities below.
Judgment Excerpts
The assessee – petitioner has filed these petitions in this Court directly against the order Annexure-A passed by the Commissioner of Income Tax (Appeals) [CIT(A)] on 11.2.2015, passed in pursuance of the remand order passed by the higher Appellate Authority – Income Tax Appellate Tribunal (ITAT), ‘C’ Bench, Bangalore on 21.11.2014 for the Assessment Years 2005-2006 to 2011-2012.
The ITAT while deciding the earlier appeals filed by the assessee-petitioner, M/s.Prathibha Jewellery House had given the following directions while remanding the case back to CIT (A).
Procedural History
The assessee filed appeals before ITAT for AYs 2005-06 to 2011-12. ITAT remanded the matter to CIT(A) with directions on 21.11.2014. CIT(A) passed the impugned order on 11.2.2015. The assessee then filed writ petitions before the High Court challenging the CIT(A) order and the assessment orders.
Acts & Sections
- Income Tax Act, 1961: 153A
- Constitution of India: 226, 227
