Revenue Granted Permission to File Appeal Post-Decision on Similar Case; Assessee Consents; No Costs Imposed.

The HC granted the revenue's application under Section 158AB of the Income Tax Act, 1961, allowing the appeal to be filed after the pending appeal's decision on a similar legal question. The assessee consented, acknowledging the similarity. The Miscellaneous Application was allowed, with no costs imposed on either party.

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Issues:
Application under Section 158A (b) of the Income Tax Act, 1961 read with Rule No. 16 of the Income Tax Rules, 1962 regarding a similar question of law pending before the High Court for different assessment years.

Analysis:
The judgment pertains to an application filed by the revenue under Section 158A (b) of the Income Tax Act, 1961, in light of the newly inserted Section 158AB by the Finance Act, 2022. Section 158AB aims to address situations where identical questions of law are pending before the High Courts or the Supreme Court, intending to streamline legal proceedings and avoid unnecessary litigation. The provision outlines a procedure where legal proceedings can be kept in abeyance based on the consent of the assessee until a decision is reached in the pending proceedings, allowing for appropriate action to be taken against the assessee. The judgment extensively quotes Section 158AB, emphasizing the importance of consent from the assessee in such cases.

The revenue contended that similar questions of law are pending before the High Court for previous assessment years while the present case pertains to a different assessment year. The collegium, in this case, decided that as a similar question of law is under consideration for a previous assessment year, the revenue should be permitted to file an appeal after a decision is made in the pending appeal. The respondent/assessee had issued a letter of acceptance to the revenue, acknowledging the similarity of the legal question in the present case to that of the pending appeal. The application sought permission from the High Court to file an appeal post the decision in the pending appeal, in accordance with Section 158AB of the Income Tax Act, 1961.

Upon reviewing the provisions of Section 158AB and Rule 16 of the Income Tax Rules, 1962, along with the annexed Form 8A containing relevant details of the proceedings, the court found merit in the application and accepted it as consented by the respondent/assessee. Consequently, the Miscellaneous Application was allowed in terms of the prayer clauses presented in the application. The judgment was disposed of accordingly, with no costs imposed on either party.

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