Back
IN THE HIGH COURT OF DELHI
Manmohan, Dinesh Kumar Sharma, JJ.
Pr. Commissioner of Income Tax (Central)-2 - Appellant
Versus
S.S. Con Build Pvt. Ltd. - Respondent
ITA 57 of 2022
Decided On : 22-03-2022
| Table of Content |
|---|
| 1. challenge against itat's decision (Para 1) |
| 2. arguments against itat's ruling (Para 2 , 3) |
| 3. court's observations on jurisdiction (Para 4 , 5) |
| 4. conclusion of the case (Para 6) |
JUDGMENT
Manmohan, J. (Oral)
1. Present appeal has been filed challenging the order dated 18th February, 2021 passed by Income Tax Appellate Tribunal [ITAT] in ITA No. 6447/Del/2015 for the Assessment Year 2006-07.
2. Learned counsel for the Appellant states that ITAT has erred in deleting the addition of Rs.7,00,00,000/- made by the Assessing Officer under Section 68 of Income Tax Act, 1961 (for short `the Act') relying upon the judgment of this Court in CIT vs Kabul Chawla, [2016] 380 ITR 573. He states that ITAT has further erred in deleting the addition on the issue of jurisdiction under Section 153A of the Act without adverting to the facts and merits of the addition.
3. He emphasises that ITAT was not justified in law in not appreciating the fact that in the first round the case was remanded back to the Assessing Officer for fresh adjudication on merits of the addition. He further states that ITAT has erred in not considering that in the first round of litigation the issue of jurisdiction was not decided and the additions were decided/remanded back on merits of the addition.
4. Admittedly, the present case is covered by the decision of the Division Bench in CIT vs Kabul Chawla (supra), as the additions were not based on the seized material.
5. Further, it is settled law that the issue of jurisdiction goes to the roots of the cause and such an issue can be raised at any belated stage of the proceeding including appeal. (See: Kanwar Singh Saini vs High Court of Delhi, (2012) 4 SCC 307 and M/s. Mavany Brothers vs. CIT, 2015 SCC Online Bom 1686.
6. Consequently, this Court is of the view that no substantial question of law arises for consideration in the present appeal. Accordingly, the present appeal is dismissed.
The Assessing Officer must address jurisdictional objections timely; failure to do so violates Section 124 of the Income Tax Act, leading to a quashing of the assessment.
The court upheld the ITAT's decision that the assessment order was not erroneous or prejudicial as necessary inquiries were conducted, reaffirming the limits of appellate jurisdiction under income ta....
The High Court's jurisdiction is limited to addressing substantial questions of law, not re-assessing facts established by lower courts.
The court upheld the ITAT's decision that additions to income based on speculative documents without substantial investigation by the Assessing Officer are unsustainable in law.
An indispensable Tool for Legal Professionals, Endorsed by Various High Court and Judicial Officers
Please visit our Training & Support
Center or Contact Us for assistance
Scan Me!
India’s Legal research and Law Firm App, Download now!
For Daily Legal Updates, Join us on :
Back to top
