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

ITA/73/2002HC Punjab & HaryanaPHHC01047685200211 April 20162 pages
AI SummaryWithdrawn

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Bathinda (appellant-revenue) against an order dated 23.10.2001 passed by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar. The order pertained to the assessment year 1997-98 and concerned M/s Saraf Electricals Pvt. Ltd. (respondent-assessee). The appeal was filed under Section 260A of the Income Tax Act, 1961. The substantial questions of law raised by the revenue related to the Tribunal's findings on the distinction between making new transformers and repairing old ones, and the allowability of deductions under Sections 80-HH and 80-I.

What did the High Court hold?

The High Court noted that the appellant-revenue did not wish to press the appeal in view of the CBDT circulars concerning tax effect thresholds. The appeal was dismissed as not pressed, with liberty granted to the revenue to file an application for revival of the appeal as prayed for. The Court 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 were left open to be adjudicated in an appropriate case. Therefore, no finding was given on the merits of the substantial questions of law.

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 old transformers? (Question of law) 2. Whether the Tribunal was right in allowing deduction under Sections 80-HH and 80-I to the assessee company under the given facts and circumstances? (Question of mixed law and fact) Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The appellant-revenue submitted that in view of Circular No. 21/2015 dated 10.12.2015 and 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 Rs. 20 lacs. The revenue prayed for liberty to file an application for revival of the appeal in case something survived therein.

Which sections of the Income-tax Act were involved?

Section 260A,Section 80-HH,Section 80-I

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. 431(ASR)/2000, for the assessment year 1997-98, 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

The order continues below.

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