Commissioner of Income Tax vs Shanker Lal Ved Prakash

This application seeks a review of the judgment dated 6-11-2006 passed by this Court in IT Appeal No. 1455/2006. While allowing the appeal, this Court held that the Department had succeeded in showing that the notice u/s 143(2) of the income tax Act 1961 (Act) had been served within the statutory period prescribed under the said provision. It is contended on behalf of the assessee that the income tax Appellate Tribunal (ITAT) in its impugned order dated 16-2-2006 had not examined the merits of the case in view of its finding that the notice u/s 143(2) of the Act had not been served within the prescribed statutory period. In other words, the issue concerning the allowance of the claim of Foreign Travel Expenses of Rs. 9,33,542 and the levy of interest u/s 234(B) of the Act, was not addressed by the ITAT. It is submitted that this Court should have, consequent to setting aside impugned order dated 16-2-2006 of the ITAT remanded the matter to it for a decision on merits.

Ms. Prem Lata Bansal, learned counsel for the Department does not dispute that such consequential directions should have been issued by this Court.

Accordingly, the judgment dated 6-11-2006 is modified in the following manner and para 11 of the judgment will now read as under:- The question of law framed in paragraph 1, is answered in the negative i.e., against the assessee and in favour of the Revenue. The impugned judgment dated 16-2-2006 of the ITAT is set aside. The case is remanded to the ITAT with direction to it to dispose of on merits the grounds challenging the disallowance of the claim of Foreign Travel Expenses of Rs. 9,33,542 and the levy of interest u/s 234(B) of the Act. With the above directions, the appeal is allowed.

The review application stands disposed of accordingly.