CIT vs Rattan Babulal Poddar

Delay condoned.

Leave granted.

These appeals are directed against the order passed by the High Court of Bombay in Income Tax Appeal Nos. 49 and 152 of 2010 dt. 12-10-2011.

By the impugned order(s) the High Court has dismissed the appeals filed by the revenue. The said order passed by the High Court reads as under:

Heard.

Perusal of Para 13 of the order passed by Commissioner of Income Tax (Appeals-II), Nagpur, reveals that there are concurrent findings that for the period from 1-9-2004 upto 31-3-2005, the provisions of Section 194C of the Income Tax Act, 1961 (as amended with effect from 1-10-2004) have been applied.

We, therefore, find no substantial question of law arising in the matter. Appeal is rejected.

The revenue being aggrieved by the order(s) passed by the Income Tax Appellate Tribunal, Nagpur Bench in ITA No. 75/NAG/2009 and ITA 76/NAG/2009 for the assessment year 2005-2006 had filed Income Tax Appeal(s) before the High Court. In the said appeals, the revenue had taken up four questions of law for consideration and decision by the High Court. The questions of law that were raised by the Revenue are as under:

(1) Whether on the facts and circumstances of the case the Hon''ble Income Tax Appellate Tribunal was justified in law in holding that there were no contracts between the Assessee and the truck owners to whom the freight payments were made to be hit by the provision of Section 194C of the Act?

(2) Whether on the facts and circumstances of the case the Income Tax Appellate Tribunal was justified in law in holding that in view of the CBDT circular No. 715 1995 dt. 8-8-1995 the Assessee could not be held as defaulter within the meaning of provision of Section 194C of the Income Tax Act, 1961?

(3) Whether on the facts and circumstances of the case the Income Tax Appellate Tribunal was justified in laws in confirming the order of the Commissioner (Appeals) and thereby upholding deletion of disallowance of Rs. 1,53,79,209 made Under Section 40(a)(ia) of the Income Tax Act?

(4) Whether on the facts and circumstances of the case the Income Tax Appellate Tribunal has perversely appreciated the facts resulting in serious miscarriage of justice warranting interference at the hands of the Hon''ble Court?

The High Court without even adverting to any one of the questions of law that were raised and canvassed before it, by a cryptic and non-speaking order had dismissed the Income Tax Appeals. Aggrieved by the order passed by the High Court the revenue is before us in these civil appeals.

This Court has time and again said that High Court while disposing of an appeal should first raise substantial question of law for consideration and decision and thereafter decide the same by a speaking order by assigning appropriate reasons. To say the least, the order passed by the High Court dt. 12-10-2011 does not contain any reasons whatsoever for dismissal of the Income Tax Appeals. In our opinion, an order which does not contain reasons is no order in the eye of law and requires to be set aside.

Therefore, we set aside the order(s) passed by the High Court and remand the matter back to the High Court for fresh disposal in accordance with law. We request the High Court to consider each question of law framed by the Revenue after affording opportunity of hearing to the parties concerned.

The appeals are, accordingly, disposed of.

All the contentions raised by both the parties are kept open to be agitated before the High Court.

We clarify that we have not expressed any opinion on the merits or de-merits of the case.

Ordered accordingly.