Gupta International vs Commissioner of Income Tax, Karnal

J.S. Khehar, J.—The solitary contention of the learned counsel for the appellant before us today was, that the appellant was proceeded

against ex-parte before the Income Tax Appellate Tribunal, and that, the controversy be relegated back to Tribunal, to be disposed of on merits.

In this behalf, it ready and willing to bear costs for not appearing before Tribunal. We have heard the learned counsel for the respondent. The

solitary contention of the learned counsel for the respondent is, that on the proposition of law (adjudicated upon in the impugned order dated 25-

4-2008 by the Income Tax Appellate Tribunal) stands settled by this Court, and that, no useful purpose would be served by relegating the parties

back to the jurisdiction of the Income Tax Appellate Tribunal.

The aforesaid submission made by the learned counsel for the respondent is refuted by the learned counsel for the appellant. He states that the

real issues canvassed on behalf of the appellant could not be considered on account of absence of representation.

In the peculiar facts and circumstances instant appeal deserves to be allowed. The order passed by the Income Tax Appellate Tribunal dated

25-4-2008 is, accordingly, set aside. The parties are relegated back to the Income Tax Appellate Tribunal. The parties shall appear before the

Income Tax Appellate Tribunal on 26-2-2009.

In view of the fact, that the appellant has been responsible for requiring the Income Tax Appellate Tribunal to dispose of the main appeal for the

second time, we are satisfied that the appellant should pay costs to the respondent. Accordingly, the appellant is directed to pay a sum of Rs.

11,000 as costs. The aforesaid costs shall be deposited with the Assessing Officer within one week from today. If the aforesaid costs are not

deposited with the Assessing Officer within the time stipulated hereinabove, the impugned order passed by the Income Tax Appellate Tribunal

dated 25-4-2008 shall be deemed to have revived automatically.

It needs to be clarified, that the acceptance of the instant appeal should not be treated as a determination of the controversy on merits by this

Court. The instant appeal has merely been allowed on technicality, so as to enable the appellant to agitate his claim on merits, before the Income

Tax Appellate Tribunal. Disposed of in the aforesaid terms.