THE PR. COMMISSIONER OF INCOME TAX LUDHIANA vs. M/S MBD PRINTOGRAPHICS PVT LTD JALANDHAR

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ITA/15/2017HC Punjab & HaryanaPHHC01117336201717 May 2017Author: MR. JUSTICE SURINDER GUPTA,MR. JUSTICE JITENDRA CHAUHAN2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the Tribunal, in adjudicating the appeal for Assessment Year 2010-11, had relied on its earlier decision in the assessee's own case for Assessment Years 2005-06 to 2009-10. The Tribunal had held that its prior decision squarely covered the issue in the present case and consequently dismissed the revenue's appeal. However, it was brought to the Court's attention that the Tribunal's order for the earlier assessment years (2005-06 to 2009-10) was the subject of appeal before this Court in ITA No. 122 of 2013. In that related appeal, this Court had remanded the matter back to the Tribunal for fresh adjudication after providing an opportunity of hearing to the parties, vide its order dated 11th January, 2017. Consequently, the present appeal was disposed of in the same terms as the remand order in the related appeal.

What were the facts?

The Principal Commissioner of Income Tax (Central), Ludhiana (the revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against the order dated 13.06.2016 passed by the Income Tax Appellate Tribunal (the Tribunal), Amritsar Bench. The appeal pertains to Assessment Year 2010-11 and challenges the deletion of disallowance of deduction under Section 80-IC. The disallowance was made by the Assessing Officer (AO) on account of job work done outside the specified area (Himachal Pradesh) and on trading receipts from the sale of unused papers. The Tribunal had upheld the order of the Commissioner of Income Tax (Appeals) in deleting this disallowance, relying on its previous decisions for Assessment Years 2005-06 to 2009-10. The revenue's appeals for those earlier years were pending before the High Court.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the Tribunal erred in upholding the deletion of disallowance of deduction under Section 80-IC of the Income Tax Act, 1961, made by the AO on account of job work performed outside the specified area (Himachal Pradesh) and on trading receipts from the sale of unused papers, by following its earlier decisions for Assessment Years 2005-06 to 2009-10. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The Tribunal's decision was based on its prior rulings for Assessment Years 2005-06 to 2009-10, which held that the issues were covered. The revenue's appeals for those years were pending before the High Court. Revenue's Contention: The revenue contended that the Tribunal erred in upholding the deletion of the disallowance made by the AO concerning job work done outside the specified area and trading receipts from unused papers, by relying on its own previous decisions for earlier assessment years. The revenue highlighted that its appeals against those earlier decisions were still pending before the High Court.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80-IC

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Decided on : 17.05.2017 The Pr. Commissioner of Income Tax (Central), Ludhiana . . . Appellant Versus M/s MBD Printographics Pvt. Ltd. . . . Respondent CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU PRESENT: Mr. Rajesh Katoch, Advocate for the appellant-revenue. Mr. Pankaj Jain, Sr. Advocate with Mr. Divya Suri, Advocate and Mr. Sachin Bhardwaj, Advocate for the respondent. **** AJAY KUMAR MITTAL, J. (Oral) The present appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short 'the Act'), against the order dated 13.06.2016 (Annexure A-3), passed by the Income Tax Appellate Tribunal (in short 'the Tribunal'), Amritsar Bench, Amritsar, claiming the following substantial question of law for the assessment year 2010-11:- “Whether on the facts and in the circumstances of the case, the Hon'ble Income Tax Appellate Tribunal, Amritsar Bench, Amritsar has erred n upholding the order of the CIT(A) in deleting the disallowance of deduction u/s 80-IC of the Income Tax Act, 1961 made by the AO on the job work got done outside the specified Area, i.e., Himachal Pradesh, and on the trading receipt from sale of unused papers, following its decisions in the case of the assessee for the assessment years 2005-06 to 2009-10, against which the appeals filed by the revenue area still pending adjudication in ITA No. 117, 118, 119, 120, 121, 122 of 2013 before this Hon'ble Court.” Jawala Ram 2017.05.25 15:29 I attest to the accuracy and authenticity of this document Chandigarh - 2 -

2.

At the outset, learned counsel for the parties submitted that the Tribunal while adjudicating the appeal relating to the Assessment Year 2010-11 had relied upon its earlier decision in the assessee's own case for the Assessment Years 2005-06 to 2009-10, decided on 28th December, 2012, holding that it squarely covered the issue in the present case and as a result, dismissed the appeal filed by the revenue.

3.

It was submitted by learned counsel for the parties that the said order was subject matter of appeal before this Court in ITA No. 122 of 2013, wherein, this Court had remanded the matter to the Tribunal for fresh adjudication after affording an opportunity of hearing to the parties vide order dated 11th January, 2017. 3. Accordingly, the present appeal stands disposed of in the same terms. (AJAY KUMAR MITTAL) JUDGE (HARINDER SINGH SIDHU) May 17, 2017 JUDGE J.Ram

Whether speaking/reasoned: Yes/No Whether Reportable: Yes/No Jawala Ram 2017.05.25 15:29 I attest to the accuracy and authenticity of this document Chandigarh

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