Commissioner of Income Tax vs Giani Ram and Company

Adarsh Kumar Goel, J.—The Revenue has preferred this appeal u/s 260A of the Income Tax Act, 1961 (for short, "the Act") against the order dated October 26, 2004, passed by the Income Tax Appellate Tribunal, Delhi Bench, "SMC-II", New Delhi, in I. T. A. No. 2037/Del/2004 for the assessment year 1995-96, proposing to raise the following substantial questions of law:

(a) Whether, on the facts and circumstances of the case, the Income Tax Appellate Tribunal has erred in law in holding that the appeal filed by the Revenue is incompetent as the Revenue cannot be treated as aggrieved from the order of the learned Commissioner of Income Tax (Appeals) ?

(b) On the facts and circumstances of the case, the Income Tax Appellate Tribunal has erred in law in not adjudicating upon any of the specific grounds taken by the Revenue before it ?

The assessee is a liquor licensee. The Assessing Officer treated liability towards licence fee payable by the assessee to be income from undisclosed sources.

However, out of the said income, deduction was allowed u/s 43B of the Act on account of licence fee paid to the Excise Department. Against the order of the Assessing Officer, the Commissioner of Income Tax (Appeals) dismissed the appeal and held that the Assessing Officer was justified in treating and declaring income of the assessee from undisclosed sources and also in allowing the deduction u/s 43B of the Act.

The Revenue preferred an appeal to the Tribunal submitting that the issue of admissibility of deduction was not before the Commissioner of Income Tax (Appeals).

The Tribunal held that the Commissioner of Income Tax (Appeals) having dismissed the appeal and upheld the assessment, the Revenue cannot be held to be aggrieved by the order of the Commissioner of Income Tax (Appeals).

Learned counsel for the Revenue submits that since the Commissioner of Income Tax (Appeals) dealt with the issue of admissibility of the deduction, the Revenue was aggrieved by the order of the Commissioner of Income Tax (Appeals).

We do not find any merit in this appeal. The Commissioner of Income Tax (Appeals) having upheld the order of assessment and not interfered with any liability under the order of assessment, the Tribunal was justified in observing that the Revenue cannot be treated to be aggrieved party.

In view of above, no substantial question of law arises.

The appeal is dismissed.