By TIOL News Service

JAIPUR, APRIL 09, 2018: THE issue at hand was - Whether a senior Revenue official can be held accountable and cost is warranted to be imposed if the Department continues to file appeals on flimsy grounds. YES is the verdict.

Facts of the case

The assessee, an individual, filed returns for the relevant AY. On assessment, the AO made an addition to the assessee's income on account of unaccounted income arising from unrecorded sale of a farmhouse. On appeal, the CIT(A) partly allowed the assessee's appeal. Subsequently, the Tribunal deleted the addition made and gave full relief to the assessee. Hence the Revenue's appeal, wherein it claimed that the Tribunal disregarded the factual findings of the CIT(A) as well as the AO. The Revenue further claimed that the Tribunal went beyond the scope of the appeal by giving relief to the assessee on wrong premises.

On hearing the matter, the High Court held that,

++ considered the relevant findings of the CIT(A) in allowing partial relief to the assessee. Also considered relevant findings of the Tribunal. This court finds that the Tribunal rightly held that there to be nothing on record to show that the document was signed by the assessee or any amount given to his account. On the contrary, in view of the above observations, this court is in complete agreement with the view taken by the Tribunal, therefore, no case is made out for interference. No substantial question of law arises;

++ further, notice served to the department to the effect that they should not prefer such an appeal. Notice be issued to the Chief Commissioner of Income Tax to see that they will obtain a certificate that the issue decided is not against any of the Supreme Court or jurisdictional High Court. The appeal will not be filed as a matter of course merely because it is beyond Rs. 20,00,000/-. If it is not certified, cost will be recovered personally from the Chief Commissioner of Income Tax since they are avoiding the audit objections and filing appeals to avoid any objection and High Court should not be burdened by such bogus appeal.

(See 2018-TIOL-639-HC-RAJ-IT)