Pr. Commissioner of Income-tax-2 v. Prabhakar Paper Mills Pvt. Ltd
[Citation -2020-LL-0207-87]

Citation 2020-LL-0207-87
Appellant Name Pr. Commissioner of Income-tax-2
Respondent Name Prabhakar Paper Mills Pvt. Ltd.
Court HIGH COURT OF MADHYA PRADESH
Relevant Act Income-tax
Date of Order 07/02/2020
Judgment View Judgment
Keyword Tags low tax effect • book profit
Bot Summary: In this appeal filed under Section 260A of the Income Tax Act, 1961 by the Revenue against the order dated 07.5.2019 passed by the Income Tax Appellate Tribunal, Indore Bench, Indore in ITA No.824//Ind/2018, the Revenue has claimed following substantial questions of law :- 1. Whether, on the facts and in the circumstances of the case, and in law, the ITAT was justified in holding that the order u/s 143(3) r.w.s. 254 is not erroneous when the said order passed by the AO determining the income of the assessee was without making enquiries about determination of book profit u/s 115JB of the Act which resulted in non-assessment of book profit, involving tax- effect under MAT provisions of the I.T. Act, 1961 Hence, the order of the ITAT is perverse on facts and in law. Whether, on the facts and in the circumstances of the case, and in law, the ITAT was justified in quashing the order u/s 263 of the Act dated 31.07.2018 when the same was passed well within the time allowed since the order u/s 143(3)/254 of the Act was passed by the AO on 28.11.2016 3. Whether, the Tribunal was correct in quashing the order u/s 263 dated 31.07.2018 passed by the Pr. CIT-2, Bhopal holding that the Pr. CIT exceeded the jurisdiction by invoking the powers u/s 263 of the Income Tax Act and ignoring clause of explanation 1 to sub-section of Section 263 4. Whether, the ITAT was correct in restoring the assessment order of the AO u/s 143(3)/254 dated 28.11.2016 with the conclusion that the order framed by the Assessing officer u/s 143(3) r.w.s. 254 of the Income Tax Act is not erroneous without appreciating the fact that the order passed u/s 263 was based on different issues which were not subject matter of appeal before the ITAT Learned counsel for the appellant candidly admitted that the challenge 2 ITA-143-2019 in the present appeal is regarding addition of Rs.34,22,380/- as would be clear from the substantial questions of law as proposed above. In view of the above order of the Apex Court, the present appeal is dismissed. It is clarified that dismissal of the appeal shall not be taken to be affirmation of order of the Tribunal on merits.


1 ITA-143-2019 High Court Of Madhya Pradesh ITA-143-2019 (PR. COMMISSIONER OF INCOME TAX 2 Vs M/S PRABHAKAR PAPER MILLS PVT. LTD.) Jabalpur, Dated : 07-02-2020 Shri Sanjay Lal, Advocate for appellant. In this appeal filed under Section 260A of Income Tax Act, 1961 by Revenue against order dated 07.5.2019 passed by Income Tax Appellate Tribunal, Indore Bench, Indore in ITA No.824//Ind/2018, Revenue has claimed following substantial questions of law :- "1. Whether, on facts and in circumstances of case, and in law, ITAT was justified in holding that order u/s 143(3) r.w.s. 254 is not erroneous when said order passed by AO determining income of assessee was without making enquiries about determination of book profit u/s 115JB of Act which resulted in non-assessment of book profit, involving tax- effect under MAT provisions of I.T. Act, 1961? Hence, order of ITAT is perverse on facts and in law. 2. Whether, on facts and in circumstances of case, and in law, ITAT was justified in quashing order u/s 263 of Act dated 31.07.2018 when same was passed well within time allowed since order u/s 143(3)/254 of Act was passed by AO on 28.11.2016 ? 3. Whether, Tribunal was correct in quashing order u/s 263 dated 31.07.2018 passed by Pr. CIT-2, Bhopal holding that Pr. CIT exceeded jurisdiction by invoking powers u/s 263 of Income Tax Act and ignoring clause (c) of explanation 1 to sub-section (1) of Section 263? 4. Whether, ITAT was correct in restoring assessment order of AO u/s 143(3)/254 dated 28.11.2016 with conclusion that order framed by Assessing officer u/s 143(3) r.w.s. 254 of Income Tax Act is not erroneous without appreciating fact that order passed u/s 263 was based on different issues which were not subject matter of appeal before ITAT ?" Learned counsel for appellant candidly admitted that challenge 2 ITA-143-2019 in present appeal is regarding addition of Rs.34,22,380/- as would be clear from substantial questions of law as proposed above. In aforesaid premise, it was stated that tax effect without interest and penalty would be less than Rs.3,19,860/-. Apex Court in case of Commissioner of Income Tax Vs. Dhanalekshmi Bank Limited (2015) 14 SCC 749 had dismissed appeal of revenue without going into merits of appeal due to low tax effect leaving question of law open. In view of above order of Apex Court, present appeal is dismissed. It is, however, clarified that dismissal of appeal shall not be taken to be affirmation of order of Tribunal on merits. Further, legal issue as claimed by Revenue is being left open to be adjudicated in appropriate case. (AJAY KUMAR MITTAL) (VIJAY KUMAR SHUKLA) CHIEF JUSTICE JUDGE PK Signature Not Verified SAN Digitally signed by PARITOSH KUMAR Date: 2020.02.12 11:42:00 IST Pr. Commissioner of Income-tax-2 v. Prabhakar Paper Mills Pvt. Ltd
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