Commissioner of Income Tax, Delhi vs Datson Investment Ltd.

Admit. After hearing learned counsel for the parties, the following substantial question of law is framed for our consideration:-

Whether the income tax Appellate Tribunal was correct in law in declining to remand the matter back to the file of the Assessing Officer?

Filing of paper books is dispensed with.

We have heard the learned counsel for both the parties on the merits of the appeal.

It has been brought to our notice that the income tax Appellate Tribunal (the Tribunal) has observed in its order dated 3-2-2006 in ITA No. 1197/Del/2002 relevant for the assessment year 1997-98, that in view of the evidence that has been brought on record, the matter ought to have been remanded back to the file of the Assessing Officer for verification.

However, the Tribunal held that in view of the evidence placed before it in the form of the police report and the order of the Company Law Board, it would not be appropriate to prolong the litigation in case of a defunct company and that is why it declined to remand the matter.

Learned counsel for both the parties say that they have no objection if the matter is remanded back to file of the Assessing Officer.

Even otherwise, we are of the view that necessary adjudication of facts must come on record and if litigation has to be prolonged, then so be it. That by itself is no ground to decline to remand the matter.

Under the circumstances, we must answer the question in the negative, in favour of the revenue and against the assessee and direct the mater to be placed on the file of the Assessing Officer for adjudication in terms of the order passed by the Tribunal. The appeal is disposed of.