2021 (1) TMI 241 - HC - Income Tax

Remedy of appeal as enshrined under the provisions of Section 260 A - Dismissal of appeal against assessment order u/s 153A - rectification of alleged mistakes apparent also dismissed - A statement is filed on behalf of the respondents and it is stated therein that the assessee had not filed return of income and since details of payment received by the assessee was seized from the Medical College where proceedings u/s 132 took place notice u/s 153C was issued - HELD THAT - The plain and simple reading of Section 260A of the Income Tax Act reveals that appeal to the High Court can be filed within a period of 120 days. The Tribunal while examining the application for taking out additional charges rejected the same on the sole ground that no additional evidence or material was placed. Even attempt was made to make out a case of an error apparent on record by invoking the provisions of section 254(2). Be that as it may. This Court by invoking the provisions under Article 226 of the Constitution of India cannot assume the role of an appellate court in deciding the matter particularly when the matter is amenable to appeal under the provisions of the Act referred. The writ petition is bereft of merits and it is accordingly dismissed.

Summary

Issues Involved:
Challenge to the order of the Income Tax Appellate Tribunal under Section 153A r/w Section 153 C of the Income Tax Act, 1961; Appeal remedy under Section 260 A of the Income Tax Act; Alleged mistakes in the order of the Tribunal; Application for rectification of mistakes apparent on record; Examination of additional charges by the Tribunal; Role of High Court under Article 226 of the Constitution of India in appeal matters.

Challenge to the Order of the Income Tax Appellate Tribunal:
The petitioner, a company running a hospital, challenged the order of the Income Tax Appellate Tribunal dated 20.9.2019, related to assessments for the years 2006-07 to 2011-12 under Section 153A r/w Section 153 C of the Income Tax Act, 1961. The petitioner's appeals were dismissed, and subsequent miscellaneous applications for rectification of alleged mistakes in the order were also rejected. The High Court examined the grounds of the challenge and dismissed the writ petition, emphasizing the availability of the appeal remedy under Section 260 A of the Income Tax Act for such matters.

Appeal Remedy Under Section 260 A of the Income Tax Act:
The counsel for the petitioner contended that there was no remedy of appeal as per Section 260 A of the Income Tax Act. However, the High Court analyzed Section 260A, which provides for an appeal to the High Court from orders passed by the Appellate Tribunal involving substantial questions of law. The Court clarified the timeline for filing such appeals and the procedure for admitting appeals beyond the prescribed period if sufficient cause is shown. The judgment highlighted the specific requirements for filing appeals under Section 260A, emphasizing the importance of substantial questions of law in such appeals.

Alleged Mistakes in the Order of the Tribunal and Rectification Applications:
The petitioner raised concerns about alleged mistakes in the Tribunal's order and filed miscellaneous applications for rectification of these errors. The Court noted the rejection of the applications by the Tribunal due to the absence of additional evidence or material to support the claims of mistakes apparent on record. The judgment underscored that the High Court cannot act as an appellate authority under Article 226 of the Constitution of India, especially when appeal remedies are available under the Income Tax Act.

Examination of Additional Charges by the Tribunal:
The Tribunal's decision to reject the application for additional charges was based on the lack of supporting evidence or material. The petitioner's attempts to establish errors apparent on record under Section 254(2) were not successful. The Court observed the Tribunal's reasoning and upheld the decision, emphasizing the importance of presenting substantial evidence to support claims of mistakes in orders.

Role of High Court under Article 226 in Appeal Matters:
The judgment clarified that the High Court cannot assume the role of an appellate court in deciding matters that are subject to appeal under the provisions of the Income Tax Act. While examining challenges to Tribunal orders, the High Court's jurisdiction under Article 226 of the Constitution of India does not extend to acting as an appellate authority. The Court dismissed the writ petition, stating it lacked merit and highlighting the importance of following the appeal procedures outlined in the relevant legislation.

This detailed analysis of the judgment from the Kerala High Court provides a comprehensive overview of the issues involved and the Court's reasoning in addressing each aspect of the legal dispute.