The Principal Commissioner Of Income Tax, (Central), Rajasthan,Room v. Shri Arun Agarwal

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 93/2024 The Principal Commissioner Of Income Tax, (Central), Rajasthan,Room No. 402, 4Th Floor, Jeevan Nidhi-2, Bhawani Singh Road,Ambedkar Circle, Jaipur 302005 ----Appellant Versus Shri Arun Agarwal, R/o Mansarovar, Rameshwaram Parisar,Sitabari, Tonk Road, Jaipur(PAN/GIR No.- ) ----Respondent For Appellant(s) : Mr. Siddharth Bapna withMr. Meyhul MittalFor Respondent(s): HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR Order 21/02/2025 1.The issue involved in this appeal is as to whether the appealis maintainable against the order passed on a rectificationapplication was decided by the Division Bench of this Court in D.B.Income Tax Appeal No.90/2020 titled as Pr. Commissioner ofIncome Tax vs. M/s Hari Narain Parwal and other connectedmatters. The order is reproduced. “1.These appeals are filed proposing substantialquestions of law arising from the order dated20.03.2020 whereby the application forrectification was rejected.questions of law arising from the order dated20.03.2020 whereby the application forrectification was rejected. 2.Learned counsel for the respondents hasraised a preliminary objection that appeal is notmaintainable. Reliance is placed upon decisions ofM/s Mangalam Cement Limited Versus Unionof Indiareported in(2015) SCC Online Raj3492 and CIT Vs. Saroop Tanneries Ltd.reported in (2015) 60 taxmann.com 305.raised a preliminary objection that appeal is notmaintainable. Reliance is placed upon decisions ofM/s Mangalam Cement Limited Versus Unionof Indiareported in(2015) SCC Online Raj3492 and CIT Vs. Saroop Tanneries Ltd.reported in (2015) 60 taxmann.com 305. 3.Learned counsel for the appellants submitthat the appeal was wrongly dismissed for havinglow tax effect, hence the appeal is maintainable. 4.Section 260-A of the Income Tax Act, 1961 isreproduced below:- “260A. (1) An appeal shall lie to the High Court fromevery order passed in appeal by the AppellateTribunal, if the High Court is satisfied that the caseinvolves a substantial question of law. (2) The Principal Chief Commissioner or ChiefCommissioner or the Principal Commissioner orCommissioner or an assessee aggrieved by any orderpassed by the Appellate Tribunal may file an appeal tothe High Court and such appeal under this sub-sectionshall be— (a) filed within one hundred and twenty days from thedate on which the order appealed against is receivedby the assessee or the Principal Chief Commissioner orChief Commissioner or Principal Commissioner orCommissioner; (b) [***] (c) in the form of a memorandum of appeal preciselystating therein the substantial question of lawinvolved. (2A) The High Court may admit an appeal after theexpiry of the period of one hundred and twenty daysreferred to in clause (a) of sub-section (2), if it is satisfied that there wassufficient cause for not filing the same within thatperiod. (3) Where the High Court is satisfied that a substantialquestion of law is involved in any case, it shallformulate that question. (4) The appeal shall be heard only on the question soformulated, and the respondents shall, at the hearingof the appeal, be allowed to argue that the case doesnot involve such question : Provided that nothing in this sub-section shall bedeemed to take away or abridge the power of thecourt to hear, for reasons to be recorded, the appealon any other substantial question of law notformulated by it, if it is satisfied that the case involvessuch question. (5) The High Court shall decide the question of law soformulated and deliver such judgment thereoncontaining the grounds on which such decision isfounded and may award such cost as it deems fit. (6) The High Court may determine any issue which—(a) has not been determined by the AppellateTribunal; or (4) The appeal shall be heard only on the question soformulated, and the respondents shall, at the hearingof the appeal, be allowed to argue that the case doesnot involve such question : Provided that nothing in this sub-section shall bedeemed to take away or abridge the power of thecourt to hear, for reasons to be recorded, the appealon any other substantial question of law notformulated by it, if it is satisfied that the case involvessuch question. (5) The High Court shall decide the question of law soformulated and deliver such judgment thereoncontaining the grounds on which such decision isfounded and may award such cost as it deems fit. (6) The High Court may determine any issue which—(a) has not been determined by the AppellateTribunal; or (b) has been wrongly determined by the AppellateTribunal, by reason of a decision on such question oflaw as is referred to in sub-section (1). (7) Save as otherwise provided in this Act, theprovisions of the Code of Civil Procedure, 1908 (5 of1908), relating to appeals to the High Court shall, asfar as may be, apply in the case of appeals under thissection.” 5.Under Section 260-A of the Act, onsubstantial questions of law appeal from everyorder passed in appeal by Tribunal shall lie to theHigh Court. In the present case, the appeal filedis against the dismissal of the rectification orderand not against the order passed in appealsconsequently, the appeal is not maintainable.Similar view has been taken in the decisions citedabove. 6.The appeal is dismissed as notmaintainable. Needless to say that appellantsshall be at liberty to avail remedies inaccordance with law.” 2.This appeal is dismissed as not maintainable with liberty toavail remedies in accordance with law. (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J RIYA/12