Supreme Court Remits Tax Appeal Back To Rajasthan High Court, Says High Court Cannot Dispose Of Appeal With A One Paragraph Order

The Bench, consisting of Justices U.U. Lalit and S. Ravindra Bhat, has remitted a matter back to the Rajasthan High Court for fresh consideration of a tax appeal filed by the revenue department against the order of the Jaipur bench of ITAT.

The Assessing Officer (AO) had made additions to Assessee Motisons Entertainment's income under Section 56 of the Income Tax Act which was challenged by the Assessee before the Commissioner of Income Tax (Appeals) (CIT (A)). The CIT (A) in appeal had reduced the additions made to Assessee's taxable income. The Assessee as well as the revenue department had filed an appeal before the ITAT who had affirmed the order of the CIT (A) and had set aside the entire amount added by the AO to Assessee Motisons Entertainment's taxable income on the ground that the source of income was properly explained by the Assessee. The revenue department had filed an appeal before the Rajasthan High Court who had dismissed the appeal.

The Supreme Court observed that in the present case the High Court was not justified in disposing of the appeal with a one paragraph order without discussing the issues which had arisen for consideration. The Supreme Court therefore allowed the appeal of the revenue Department and remitted the matter back to Rajasthan High Court for fresh consideration.

Case Title: Principal Commissioner Of Income Tax (Central) Versus M/S. Motisons Entertainment India Pvt. Ltd.

Counsel For The Petitioner: Mr. Balbir Singh ASG, Mr Arijit Prasad Sr. Adv., Mr Adit Khorana, Ms Niranjana Singh, Mr. Amit Verma, Mr. Manish Pushkarna, Mr. Shyam Gopal , Mr. Raj Bahadur Yadav AOR

Counsel For The Respondent: Mr. Arvind Datar Sr. Adv., Mr Vikas Mehta AOR, Mr Sandeep Hora, Mr. Adith Nair.

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