Calcutta High Court
Principal Commissioner Of Income Tax vs M/S Hooghly Mills Co. Ltd on 5 August, 2025
Author: T.S. Sivagnanam
Bench: T.S Sivagnanam
OD-4
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION [INCOME TAX]
ORIGINAL SIDE
ITA/27/2022
PRINCIPAL COMMISSIONER OF INCOME TAX, KOLKATA-I
VS
M/S HOOGHLY MILLS CO. LTD
BEFORE :
THE HON'BLE THE CHIEF JUSTICE T.S SIVAGNANAM
-A N D-
HON'BLE JUSTICE CHAITALI CHATTERJEE (DAS)
DATE : 5th August, 2025.
Appearance :
Mr. Smarajit Roychowdhury, Adv. ...for appellant.
Mr. Sourav Bagaria, Adv.
Mr. Rites Goel, Adv. ...for respondent.
The Court : - This appeal filed by the revenue under Section 260A of the Income
Tax Act, 1961 (the Act) challenging the order dated 15.7.2016 passed by the Income
Tax Appellate Tribunal, "A" Bench, Kolkata (the Tribunal) in ITA/547/Kol/2011 for the
assessment year 2006-2007.
The assessee has raised the following substantial question of law for
consideration :
"1. Whether on the facts and circumstances of the case the Hon'ble Income
Tax Appellate Tribunal, "A" Bench, Kolkata erred in quashing the order u/s
263 of the Act passed by the Ld.CIT on the issues of deemed dividend,
gratuity liability, employee contribution, and liability u/s 14 r/w Rule 8D?"
We have heard learned advocates on either side.
When the matter was last heard on 14.7.2025 the learned advocate appearing
for the respondent/assessee submitted that the appeal filed by the revenue has
become infructuous. Therefore, an order was passed on 14.7.2025 directing the
department to give written instruction to the learned senior standing counsel. By e-
mail dated 28.7.2025, the learned senior standing counsel has been informed that the
papers are not available with the department and seeks time to furnish relevant
information.
Considering the facts and circumstances, we are of the view that no useful
purpose would be served by keeping the appeal pending in the light of the following
reasons.
The original assessment was completed under section 143(3) by an order dated
31.12.2008 against which the assessee filed an appeal before the CIT(A) which was
allowed by order dated 28.1.2011. The revenue challenged the said order before the
Tribunal in ITA/601/Kol/2011 which was dismissed by an order dated 22.1.2025. The
revenue challenged the said order before this court in ITA/58/Kol/2018 which was
dismissed by this court by judgment dated 8.4.2016. On the same day, when the
original assessment was issued under section 143(3) of the Act by an order dated
31.12.2008, the Commissioner of Income Tax invoked his power under section 263 of
the Act and by order dated 1.3.2011 set aside the assessment order dated 31.12.2008.
The said order passed under section 263 of the Act was challenged by the assessee
before the Tribunal in ITA/547/Kol/2011 which was allowed quashing the order
passed under section 263 by an order dated 15.7.2016 against which the present
appeal has been filed. In the meantime, pursuant to the direction issued by the
Commissioner under section 263 of the Act, the assessing officer took up the
assessment for fresh consideration and fresh assessment was passed on 30.8.2011.
Aggrieved by the same, the assessee preferred appeal before the CIT(A) which was
allowed by an order dated 12.12.2013. The revenue challenged the said order before
the Tribunal being ITA/421/Kol/2014 which was dismissed by the learned Tribunal
by an order dated 1.3.2017 and no further appeal has been filed against the said order
and the same attained finality.
In the light of the above facts, the present appeal filed by the revenue has
become infructuous. Accordingly, the appeal stands dismissed and the substantial
question of law admitted for consideration is left open.
The written instruction filed in Court today is taken on record.
(T.S. SIVAGNANAM, CJ.)
(CHAITALI CHATTERJEE (DAS), J.)
SM/Pkd.
AR(CR)
