2015 (1) TMI 1373 - AT - Income Tax

High Court Upholds Tribunal Decision on Tax Appeal, Emphasizing Finality in Legal Process

The Hon'ble Bombay High Court affirmed the order of the Tribunal, dismissing the Revenue's appeal. The Tribunal's decision to cancel the ld. ... Canceling the order passed by the Assessing Officer u/s 143(3) r.w.s 263 - Held that:- Order u/s 263, passed by the ld. Commissioner, the assessee filed appeal before the Tribunal [2012 (3) TMI 610 - ITAT MUMBAI], wherein allowed the appeal of the assessee canceling the order of the ld. Commissioner, which was later on affirmed by the Hon’ble jurisdictional High Court (2013 (1) TMI 955 - BOMBAY HIGH COURT). Thus, the ground raised by the Revenue that the Department has challenged the order of the Tribunal is automatically answered, therefore, the appeal of the Revenue is dismissed. Issues:- Justification of canceling the order passed by the Assessing Officer u/s 143(3) r.w.s 263 of the Act- Affirmation of the order of the Tribunal by the Hon'ble Bombay High CourtAnalysis:1. The main issue in this case was whether the ld. Commissioner of Income tax (Appeals) was justified in canceling the order passed by the Assessing Officer u/s 143(3) r.w.s 263 of the Act without appreciating the fact that the order of the Tribunal dated 21/03/2012, relied upon by the ld. Commissioner, was challenged before the Hon'ble Bombay High Court and was pending. The Revenue was aggrieved by the impugned order of the ld. First Appellate Authority, Mumbai. However, during the hearing, it was revealed that the order of the Tribunal had been affirmed by the Hon'ble Bombay High Court vide order dated 15/01/2012. The factual matrix was not disputed by the ld. DR. The Tribunal noted that subsequent to the order u/s 263 passed by the ld. Commissioner, the assessee filed an appeal before the Tribunal, which was allowed, canceling the ld. Commissioner's order. This decision was later affirmed by the Hon'ble jurisdictional High Court. Therefore, the ground raised by the Revenue regarding the challenge to the Tribunal's order was automatically answered, leading to the dismissal of the Revenue's appeal.2. The second issue revolved around the affirmation of the order of the Tribunal by the Hon'ble Bombay High Court. The Tribunal, in its detailed analysis, highlighted that the assessee had filed an appeal before them, resulting in the cancellation of the ld. Commissioner's order. This decision was subsequently upheld by the Hon'ble jurisdictional High Court. The Tribunal's order was affirmed by the High Court, thereby settling the matter conclusively. As a result, the appeal of the Revenue was dismissed. The judgment emphasized the importance of legal processes and the finality of decisions made by the higher courts, providing clarity on the legal standing of the case and resolving any ambiguity regarding the validity of the Tribunal's decision.In conclusion, the judgment clarified the issues surrounding the cancellation of the Assessing Officer's order and the affirmation of the Tribunal's decision by the Hon'ble Bombay High Court. The detailed analysis provided a clear understanding of the legal proceedings, highlighting the significance of higher court affirmations in settling disputes and ensuring the finality of decisions in tax matters.