MKR Palanisamy & Sons Vs ACIT (Madras High Court)
These Tax Case (Appeals) were filed before the Madras High Court for assessment years 2001-02 to 2007-08, challenging the order of the Income Tax Appellate Tribunal dated 07.05.2012 passed under the Income Tax Act, 1961. The Tribunal had remitted the matters back to the Assessing Authority for determination of jurisdiction and for framing fresh assessments under Section 143(3) read with Section 153.
On 28.02.2013, the High Court admitted three substantial questions of law. These questions concerned whether the Tribunal erred in treating the original assessments dated 30.12.2008 as merely irregular and capable of revival, whether the Tribunal exceeded its appellate powers by issuing directions that would defeat the statutory bar of limitation under the first proviso to Section 153B(1) for assessments under Section 153C, and whether the Tribunal could ignore decisions of coordinate benches in cases of connected assessees where assessments had been annulled or directions were issued subject to limitation.
The Court heard the submissions of counsel appearing for both the assessee and the Department. However, the Court decided to dispose of the appeals on a short and decisive ground without entering into the merits of the substantial questions of law. The Tribunal’s order dated 07.05.2012 had remitted the matters for fresh action, but despite the passage of considerable time, no consequential steps had been taken by the Department.
