2005 (2) TMI 44 - HC - Income Tax

High Court overturns Tribunal's remand decision on jurisdiction issue, orders fresh adjudication

The High Court found that the Tribunal erred in remanding the case back to the Assessing Officer regarding a jurisdictional issue that had already been ... 'Whether Tribunal is justified in setting aside the assessment order with a direction also to decide the issue of jurisdiction under section 124 and to pass an order in accordance with law which question the said Assessing Officer has already decided in this order dated March 13, 1995, and thus the Tribunal should have decided the issue of jurisdiction itself?' - Revenue fairly states that in the face of the finding recorded by the Assessing Officer on the issue of jurisdiction, the Tribunal should have itself adjudicated on the issue and should not have remanded the case to the Assessing Officer for fresh decision on the same issue – Revenue’s appeal is allowed – Order passed by the Tribunal is set aside and the case is remanded to it for fresh adjudication of the appeal filed by the assessee. Issues:1. Jurisdictional issue regarding the setting aside of the assessment order by the Tribunal.Analysis:The appellant, engaged in trading foodgrains, filed a return for the assessment year 1992-93, showing a loss. The case was selected for scrutiny, and the Assessing Officer rejected the appellant's plea for transfer, asserting jurisdiction to decide. Subsequently, the assessment was finalized at a certain income. Dissatisfied, the appellant appealed to the Commissioner of Income-tax (Appeals) and then to the Income-tax Appellate Tribunal. The Tribunal remanded the case to the Assessing Officer to decide the jurisdictional issue, emphasizing its importance. However, the High Court found that the Tribunal erred in remanding the case as the Assessing Officer had already decided the jurisdiction issue in previous orders. The Tribunal should have adjudicated on the issue itself rather than remanding it.The High Court highlighted that the Assessing Officer had clearly stated the jurisdiction vested with him and that the appellant was not entitled to question it after a certain period. The court noted that the Tribunal should have considered the Assessing Officer's findings on jurisdiction and made a decision accordingly. The court emphasized that the Tribunal's duty was to adjudicate on the issue rather than remanding it back to the Assessing Officer. Therefore, the High Court allowed the appeal, set aside the Tribunal's order, and remanded the case back to the Tribunal for fresh adjudication, directing the parties to appear before the Tribunal on a specified date for further proceedings.