TaxTMI 
TaxTMI 
2023 (9) TMI 223
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....is aggrieved by the judgment dated 25.08.2017 passed in ITA No.55/2017 by the High Court of Delhi. By the said order, the appeal of the respondent herein filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the "Act" for the sake of convenience) was disposed of on merits without being argued on the substantial question of law. Being aggrieved, the appellant has filed this appeal. We have heard Mr. C. S. Aggarwal, learned Senior Counsel for the appellant-assessee and Mr. Balbir Singh, learned ASG for the respondent-Revenue and perused the material on record. The main grievance of the appellant-assessee is with regard to the manner of disposal of the appeal filed by the respondent- Revenue, by the High Court. In ....
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....isfied that the case involves such question. The submission of learned senior counsel for the appellant was that in the instant case there has been a reversal of procedure adopted inasmuch as the learned counsel for the respective parties were first heard on merits of the appeal in the absence of any formulation of substantial question of law and thereafter on 03.08.2017 the appeal was reserved for judgment. Thereafter, the question of law (not a substantial question of law according to learned senior counsel for the appellant) was formulated and the appeal was allowed on merits. It was submitted that the impugned judgment may be set aside and the matter may be remanded to the High Court so as to comply with the requisite procedure under ....
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....undred and twenty days from the date on which the order appealed against is [received by the assessee or the [Principal Chief Commissioner or Chief Commissioner] or [Principal Commissioner or Commissioner]; [* * * * *] (c)in the form of a memorandum of appeal precisely stating therein the substantial question of law involved. [(2A)The High Court may admit an appeal after the expiry of the period of one hundred and twenty days referred to in clause (a) of sub-section (2), if it is satisfied that there was sufficient cause for not filing the same within that period.] (3) Where the High Court is satisfied that a substantial question of law is involved in any case, it shall formulate that question. (4) The appeal shall be heard o....
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....equently the matter must be disposed of depending on whether the substantial question of law requires to be answered for or against either of the parties or no such question of law would arise. The High Court has also the power to formulate a fresh question of law if it so arises on hearing the learned counsel for the respective parties in the event, such a substantial question of law would arise and if the High Court is satisfied the said case involves such a question. Further, Sub-section 7 of Section 260A states that "save as otherwise provided in this Act, the provisions of the Code of Civil Procedure, 1908 (5 of 1908), relating to appeals to the High Court shall, as far as may be, apply in the case of appeals under this section". Sinc....
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....on: Provided that nothing in this sub-section shall be deemed to take away or abridge the power of the Court to hear, for reasons to be recorded, the appeal on any other substantial question of law, not formulated by it, if it is satisfied that the case involves such question." Having discussed the principles for entertainment of an Appeal by the High Court under Section 260A and when the same are applied to the present case, we find that the High Court did not formulate any substantial question of law at the time of admitting the appeal, rather the appeal was heard on merits and in the absence of formulating the substantial question of law the appeal was reserved for judgment. During the course of preparation of the judgment, the ques....