Ita/469/2008 Of M/S Consulate Constructions v. The Commissioner Of Income Tax

IN THE HIGH COURT OF KARNATAKA AT BANGALORE DATED THIS THE 13 DAY OF JUNE, 2014 PRESENT THE HON’BLE Mr. JUSTICE N. KUMAR AND THE HON’BLE Mr. JUSTICE B. MANOHAR I.T.A. No. 469/2008 BETWEEN : -------------- M/S. CONSULATE CONSTRUCTIONS REP. BY ITS PARTNER Sri. FAZAL-UR-RAHAMAN UNIT No. 102, CONSULATE-1 No.1, RICHMOND ROAD BANGALORE – 560 025. … APPELLANT (BY Sri. A SHANKAR & M. LAVA, ADVS.) AND : ------- THE COMMISSIOENR OF INCOME TAX, BANGALORE – I C.R. BUILDINGS QUEEN’S ROAD BANGALORE – 560 001. … RESPONDENT (BY Sri. K.V. ARAVIND, ADV.) THIS I.T.A. IS FILED UNDER SECTION 260-A OF I.T. ACT, 1961 AGAINST THE ORDER DATED 20.12.2007 PASSED IN I.T.A. No. 664/BANG/2007 FOR THE ASSESSMENT YEAR 2002-03 AND ETC. THIS I.T.A. COMING ON FOR HEARING THIS DAY, N. KUMAR, J, DELIVERED THE FOLLOWING; J U D G M E N T This is an assessee’s appeal against the order passed by the Tribunal confirming the order passed by the Commissioner of Income Tax (Appeals) under Section 263 of the Income Tax Act, 1961 (for short `the Act’). The relevant assessment year is 2002-03. 2. The Assessing Authority passed an order of assessment on 29.10.2004. Aggrieved by the said order the assessee preferred an appeal to the Commissioner of Income Tax (Appeals) who dismissed the appeal. Against the said order the assessee preferred an appeal to the Tribunal in I.T.A. No. 1292/2007. The Tribunal allowed the appeal by its order dated 24.10.2008 setting aside the orders of the lower authorities and remanded the matter back to the Assessing Authority for fresh consideration in accordance with law. It was an open remand. However the Commissioner of Income Tax, by virtue of the power conferred under Section 263 of the Act, had initiated proceedings in pursuance of the order dated 29.10.2004 on the ground that the said order is erroneous and prejudicial to the revenue. After contest an order came to be passed directing the Assessing Authority to consider an income of Rs.20.00 lakhs which had not been taken note by the Assessing Authority. It is against the said order the assessee had preferred an appeal before the Tribunal in I.T.A. No. 644/2007 which came to be dismissed. It is against this order the present appeal is preferred. 3. In the meanwhile, after remand the Assessing Authority has passed an order on 31.12.2009. The learned counsel for the assessee submits that in that order he has complied with the direction issued in the proceedings under Section 263 of the Act and the said order is adverse to the interest of the assessee and therefore now the assessee has preferred an appeal before the Commissioner of Income Tax (Appeals). In the light of these subsequent events it is submitted that this appeal has become infructuous as the entire matter is being agitated before the Appellate Authority. Reserving liberty to both the parties to contest and keeping open all contentions urged herein, this appeal is disposed off. Ordered accordingly. Sd/- JUDGE. Sd/- JUDGE. LRS.