COMMISSIONER OF INCOME TAX,BATHINDA vs. M/S SARAF ELECTRICALS PVT.LTD.

ITA/74/2002HC Punjab & HaryanaPHHC01055333200211 April 20162 pages
AI SummaryWithdrawn

What were the facts?

The Commissioner of Income Tax, Bathinda (the revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 23.10.2001 passed by the Income Tax Appellate Tribunal (ITAT), Amritsar Bench. The appeal pertained to assessment year 1995-96 and concerned M/s Saraf Electricals Pvt. Ltd. (the assessee). The substantial questions of law raised by the revenue related to whether the Tribunal was correct in holding no difference between making new transformers and repairing old ones, and whether the Tribunal erred in allowing deductions under Sections 80HH and 80I to the assessee. The amount in dispute was not explicitly stated but was implied to be below a certain threshold for the revenue to withdraw the appeal.

What did the High Court hold?

The High Court dismissed the appeal as not pressed. The revenue, citing CBDT circulars regarding tax effect, did not wish to pursue the appeal. The court granted liberty to the revenue to file an application for revival of the appeal as prayed. It was clarified that the withdrawal of the appeal by the revenue would not be taken as an affirmation of the Tribunal's order on merits. The legal issues raised by the revenue were left open to be adjudicated in an appropriate case. Therefore, no finding was reached on the merits of the questions regarding the distinction between making new transformers and repairing old ones, or the eligibility for deductions under Sections 80HH and 80I.

What were the issues?

1. Whether the Tribunal was right in holding that there was no difference in making new transformers as well as repairing of old transformers? (Question of law/mixed law and fact) 2. Whether the Tribunal was right in allowing deduction under Section 80HH and Section 80I to the assessee company under the given facts and circumstances? (Question of law/mixed law and fact) Contentions: Assessee: Not recorded in the judgment. Revenue: The revenue, through its counsel, submitted that in view of Circular No. 21/2015 dated 10.12.2015 read with Circular No. 279/Misc/M-142/2007-ITJ (Part) dated 8.3.2016, issued by the Central Board of Direct Taxes, it did not wish to press the appeal as the tax effect involved was less than ₹20 lacs. The revenue prayed for liberty to file an application for revival of the appeal if something survived therein.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80HH,Section 80I

AI-generated summary — verify with the full judgment below

-1- IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Date of Decision: 11.04.2016 The Commissioner of Income Tax, Bathinda .......Appellant Versus M/s Saraf Electricals Pvt. Ltd. ......Respondent CORAM: HON'BLE MR. JUSTICE RAJESH BINDAL HON'BLE MR. JUSTICE HARINDER SINGH SIDHU Present: Mr. C.S. Singh Advocate for Mr. G.S. Hooda, Advocate for for the appellant.

Mr. Akshay Bhan, Sr. Advocate with Mr. Alok Mittal, Advocate for the respondent. RAJESH BINDAL,J.

This appeal has been filed under Section 260 A of the Income Tax Act, 1961 (for short 'the Act'), against the order dated 23.10.2001 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, in ITA No. 674(ASR)1998, for the assessment year 1995-96, raising the following substantial question of law: (i)Whether the Tribunal was right in holding that there was no difference in making the new transformers as well as repairing of old transformers? (ii) Whether the Tribunal was right in allowing deduction u/s 80-HH and 80-I to the assessee co

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 80HH

All 84 judgments and leading authorities on Section 80HH →

Latest GST High Court judgments

Search GST case law →