HC cannot proceed to hear a second appeal without formulating substantial question of law

In this case High Court proceeded to decide the appeals without formulating the substantial question(s) of law. Indeed, the High Court did not make any effort to find out as to whether the appeals involved any substantial question(s) of law and, if so, which is/are that question(s) and nor it formulated such question(s), if in its opinion, really arose in the appeals. The High Court failed to see that it had jurisdiction to decide the appeals only on the question(s) so formulated and not beyond it. [Section 27(5)]. In view of that  the impugned orders are not legally sustainable and thus liable to be set aside.

Full Text of the Supreme Court Judgment / Order is as follows:-

1) These appeals are filed against the final judgment and orders dated 24.08.2004 passed by the High Court of Punjab and Haryana at Chandigarh in Wealth Tax Appeal Nos. 10 & 11/2001 and 3,4 & 5/2002 respectively whereby the High Court allowed the appeals filed by the Revenue (Commissioner of Wealth Tax) under Section 27-A of the Wealth Tax Act, 1957 (hereinafter referred to as “the Act”) and set aside the order dated 05.07.2011 passed by the Income Tax Appellate Tribunal (hereinafter referred to as “the Tribunal”), Chandigarh Bench in W.T.A. No. 11,12 & 13/Chandi/95 & C.O.  No. 37/Chandi/95 in W.T.A. No.11/Chandi/95 and order dated 13.06.2001 in W.T.A. Nos. 213, 191 and 192/Chandi/94 and restored the order of assessment passed by the Assessing officer for levying penalty for the entire period of delay in respect of Assessment Years 1981-82, 1982-83 and 1983-84.

2) Few facts need mention for disposal of the appeals.

3) The appellant is the wealth tax assessee and is subjected to payment of Wealth Tax under the Act. The case pertains to the Assessment Years 1981-82, 1982-83 and 1983-84. The issue involved in these three assessment years was decided by the Tribunal in favor of the appellant (assessee) which gave  rise to filing of the appeals before the High Court by the Revenue under Section 27-A of the Act questioning therein the legality and correctness of the orders of the Tribunal. As mentioned above, the High Court allowed the appeals filed by the Revenue, which has given rise to filing of these appeals by way of special leave before this Court by the assessee.

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