PCIT Vs Associated Mining Company (Karnataka High Court)
The Revenue appealed under Section 260A of the Income Tax Act against the ITAT order dated 14.05.2019 relating to Assessment Year 2008-09. The assessment orders had been passed under Sections 153A read with 144, and penalty proceedings under Section 271(1)(c) were initiated based on additions made in the assessments. The CIT(A) deleted the penalty, and the Revenue’s appeal before the ITAT was dismissed solely because the ITAT had earlier quashed the assessment orders.
Before the High Court, the Revenue submitted that the ITAT orders quashing the assessments had subsequently been set aside by the High Court in ITA No.100015/2017 and connected matters by judgment dated 22.07.2019. The assessee submitted that proceedings seeking review of that judgment had been initiated.
The High Court observed that the judgment dated 22.07.2019 continued to prevail. Since the ITAT had quashed the penalty only because the assessment orders had been set aside, and those assessment orders had subsequently been revived by the High Court, the ITAT’s order could not be sustained. The Court also noted that the ITAT had not examined the merits of the penalty proceedings or other legal issues.
Accordingly, the High Court set aside the ITAT’s order dated 14.05.2019 and remitted the matter to the Tribunal for reconsideration on merits and legal issues, leaving all contentions of the parties open.
