RYATAR SAHAKARI SAKKARRE KARKHANE NIYAMIT versus ASST. COMMISSIONER OF INCOME TAX C-1 & ORS.

Citation: [2019] 8 S.C.R. 183 · Decided: 01-05-2019 · Supreme Court of India · Bench: ABHAY MANOHAR SAPRE

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Judgment (excerpt)

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RYATAR SAHAKARI SAKKARRE KARKHANE NIYAMIT
v.
ASST. COMMISSIONER OF INCOME TAX C-1 & ORS.
(Civil Appeal Nos.4515-4524 of 2019)
MAY 01, 2019
           [ABHAY MANOHAR SAPRE AND
               DINESH MAHESHWARI, JJ.]
Income Tax Act, 1961 –  s.260-A – Substantial question of
law – The appeal is to be heard on merits, only on the questions
framed by the High Court under sub-section (3) of s.260-A of the
Act as provided under s.260A(4) of the Act – In the instant case,
High court did not frame substantial question of law as required
under s. 260-A(3) of the Act –  Matter remanded to High Court for
hearing afresh only after framing appropriate substantial question
of law as required under s. 260A(3) of the Act – Appeal.
PR. Commissioner of Income Tax Central-2 v.
M/s A.A. Estate Pvt. Ltd. 2019 (6) SCALE 509
– relied on.
 Case Law Reference
2019 (6)  SCALE 509
        relied on
Para 10
CIVIL APPELLATE JURISDICTION:  Civil Appeal Nos.4515-
4524 of 2019.
From the Judgment and Order  dated  26.02.2016 of the High
Court of  Karnataka, Dharwad Bench in ITA Nos. 100111-100120/2015
Ms. Anitha Shenai, Sr. Adv., Shankar Divate, Adv. for the Appellant.
K. Radhakrishnan, Sr. Adv., M. P. Gupta, T. M. Singh, Mrs. Anil
Katiyar, Advs. for the Respondents.
[2019]  8 S.C.R. 183
   183
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184
SUPREME COURT REPORTS
[2019] 8 S.C.R.
The Judgment of the Court was delivered by
ABHAY MANOHAR SAPRE, J.  1. Leave granted.
2. These appeals are filed against the final judgment and order
dated 26.02.2016 passed by the High Court of Karnataka, Circuit Bench
at Dharwad  in ITA Nos.100111-100120 of 2015 whereby the High Court
dismissed the ITAs filed by the appellant(assessee) herein.
3. These appeals are filed by the assessee against the order passed
by the High Court by which a bunch of appeals, some filed by the
assessee and some filed by the Commissioner of Income Tax (Revenue)
under Section 260-A of the Income Tax Act, 1961(hereinafter referred
to as “the Act”) were disposed of.
4. So far as the appeals filed by the assessee were concerned,
they were dismissed and so far as the appeals filed by the Commissioner
of Income Tax were concerned, they were allowed. The assessee has
felt aggrieved and has filed these appeals by way of special leave in this
Court.
5. We do not consider it necessary to set out the facts of the case
in detail in the light of the order that we are passing for the disposal of
these appeals.
6. Heard Ms. Anitha Shenai, learned senior counsel for the
appellant(assessee) and Mr. K. Radhakrishnan, learned senior counsel
for the respondents.
7. Having heard the learned counsel for the parties and on perusal
of the record of the case, we are inclined to allow these appeals, set
aside the impugned order and remand the case to the High Court with a
request to decide the appeals afresh on merits in accordance with law.
8. The need to remand these appeals is called for because from
the perusal of the order, we find that in Para 4, the High Court observed,
“Assessee has raised the following questions of law in its appeals”
and then set out four questions. Likewise, in Para 5, the High Court
observed, “Revenue has raised the following questions of law in its
appeals” and then set out three questions.
9.   It is not in dispute that the High Court did not frame any
question as required under Section 260-A (3) of the Act.
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10. This Court recently examined this question in Civil Appeal
No.3968 of 2019 arising out of S.L.P.(c) No.29524 of 2017 (PR.
Commissioner of Income Tax Central-2 vs. M/s A.A. Estate Pvt.
Ltd.)  decided on 16.04.2019.   Paras 21 to 26 and 28 are apposite
which read as under:
“21. As is clear from reading of Para 2, the two questions
set out in Para 2 were not the questions framed by the High
Court as was required to be framed under Section 260-A(3)
of the Act for hearing the appeal but were the questions
urged by the appellant.
22. In our view, there lies a distinction between the
questions proposed by the appellant for admission of the
appeal and the questions framed by the Court.
23. The questions, which are proposed by the appellant,
fall under Section 260-A (2) (c) of the Act whereas the
questions framed by the High Court fall under Section 260-
A (3) of the Act. The appeal is heard on merits only on the
questions framed by the High Court under sub-section (3)
of Section 260-A of the Act as provided under Section 260-
A (4) of the Act.  In other words, the appeal is hear

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