M/S FORGE AND FORGE PRIVATE LIMITED vs. ASST COMMISSIONER OF INCOME TAX

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TAXAP/847/2018HC GujaratGJHC24031048201831 July 2018Author: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE A.Y. KOGJE2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court, after hearing the learned advocates for both parties, decided not to entertain the Tax Appeal. The Court explicitly stated that the question of law would be considered in other cases between the same parties concerning different Assessment Years. The primary ground for not entertaining the present appeal was the smallness of the amount involved. Consequently, the Tax Appeal was dismissed solely on this ground. The Court did not delve into the merits of the disallowances made under Section 14A, Section 40A(3), or the travel expenses. Therefore, no specific finding was given on the substantive issues raised by the assessee, and the ratio decidendi pertains to the court's discretion to dismiss appeals based on the quantum of the amount in dispute.

What were the facts?

The assessee, M/s Forge and Forge Private Limited, filed a Tax Appeal before the High Court of Gujarat at Ahmedabad, challenging an order passed by the Income Tax Appellate Tribunal, Rajkot Bench, in ITA No.450/Rjt/2015 for the Assessment Year 2012-13. The appeal was preferred against the Tribunal's confirmation of certain disallowances made by the Assessing Officer. The specific amounts in dispute were Rs.95,058/- under Section 14A read with Rule 8D, Rs.36,520/- under Section 40A(3), and Rs.1 lakh towards travel expenses. The procedural history involves the Assessing Officer making these disallowances, which were then upheld by the Tribunal, leading to the present appeal by the assessee.

What were the issues?

The Tribunal had to decide the following questions of law: 1. Whether, on the facts and in law, the Tribunal erred in interpreting Section 14A read with Rule 8D to confirm a disallowance of Rs.95,058/- made by the Assessing Officer. 2. Whether, on the facts, the Tribunal erred in confirming a disallowance of Rs.36,520/- made by the Assessing Officer under Section 40A(3) of the Income Tax Act, 1961. 3. Whether, on the facts and in law, the Tribunal erred in confirming a disallowance of Rs.1 lakh towards travel expenses without any factual or legal justifiable basis. The assessee contended that the Tribunal had substantially erred in its interpretation and confirmation of these disallowances. The revenue's contentions are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 14A,Section 40A(3)

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
C/TAXAP/847/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 847 of 2018 ====================================== M/S FORGE AND FORGE PRIVATE LIMITED Versus ASST COMMISSIONER OF INCOME TAX ====================================== Appearance: DARSHAN R PATEL(8486) for the APPELLANT(s) No. 1 MRS MAUNA M BHATT(174) for the RESPONDENT(s) No. 1 ====================================== CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.Y. KOGJE Date : 31/07/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH)

Feeling aggrieved and dissatisfied with the impugned order passed by the learned Income Tax Appellate Tribunal, Rajkot Bench, Rajkot in ITA No.450/Rjt/2015 for the Assessment year 2012-13, assessee has preferred the present Tax Appeal with the following proposed questions of law; (1)

Whether on facts and in law, the Tribunal has substantially erred in interpreting provisions of Section 14A read alongwith Rule 8D to confirm disallowance of Rs.95,058/- made by the Assessing Officer? (2)

Whether on facts, the Tribunal has substantially erred in confirming disallowance of C/TAXAP/847/2018 ORDER Rs.36,520/- made by the Assessing Officer under Section 40A(3) of the Income Tax Act, 1961? (3)

Whether on facts and in law, the Tribunal has substantially erred in confirming disallowance of Rs.1 lakh towards travel expenses without any factual or legal justifiable basis? Having heard the learned Advocates appearing on behalf of the respective parties and keeping the question of law open to be considered in other cases between the same parties but with respect to different Assessment Years, on the smallness of the amount involved in the present Tax Appeal, present Tax Appeal is not entertained on the aforesaid ground alone and the present Tax Appeal stands dismissed on the aforesaid ground alone. (M.R. SHAH, J.) (A.Y. KOGJE, J.) siji

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