C.I.T. JDR. vs. M/S JAGATJIT FASTNERS PVT. LTD.

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ITR/42/1997HC Punjab & HaryanaPHHC01035409199730 October 2013Author: MR. JUSTICE DR. BHARAT BHUSHAN PARSOON,MR. JUSTICE RAJIVE BHALLA3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that it was unable to discern any substantial question of law from the five questions referred. The Court found that the questions framed by the Revenue pertained to additions that were deleted by the ITAT by referring to facts. The questions did not refer to any legal principle or provision of law that would require an answer. The Court expressed surprise at the casual manner in which these five 'so-called questions of law' were presented, characterizing them as nothing more than questions of fact. Consequently, the High Court declined to answer these questions of fact. No specific operative directions were issued as the reference was declined.

What were the facts?

This case involves a reference from the Income Tax Appellate Tribunal (ITAT) to the High Court of Punjab and Haryana concerning an appeal by the Commissioner of Income Tax, Jalandhar (Revenue) against M/s Jagatjit Fasteners Pvt. Ltd., Kapurthala (Assessee). The Revenue is challenging the ITAT's deletion of several additions made by the Assessing Officer and upheld by the Commissioner of Income Tax (Appeals). These additions relate to payments made to M/s Bansal Wire Product and M/s Bansal Traders, an inflated coal account, sale of scrap outside books, suppression of closing stock, and consumption of stores. The assessment years are not explicitly stated in the provided text.

What were the issues?

The High Court was asked to decide five questions of law, framed as follows: 1. Whether the ITAT was right in deleting the addition of Rs.1,13,006/- on account of money paid to M/s Bansal Wire Product and M/s Bansal Traders, as admitted by the assessee. 2. Whether the ITAT was right in deleting the addition of Rs.33,926/- on account of an inflated coal account, as admitted by the assessee. 3. Whether the ITAT was right in deleting the addition of Rs.10,000/- on account of the sale of scrap outside the books of accounts, as admitted by the assessee. 4. Whether the ITAT was right in deleting the addition of Rs.72,502/- on account of suppression of closing stock of finished and semi-finished goods, as evident from impounded documents. 5. Whether the ITAT was right in deleting the addition of Rs.31,646/- by allowing consumption of stores at Rs.94,712/- on the basis of impounded documents against Rs.1,26,358/- claimed by the assessee. The Revenue contended that these were substantial questions of law. The Assessee's contentions are not recorded in the provided text.

AI-generated summary — verify with the full judgment below

[ 1 ] IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH Decided on: 30.10.2013

The Commissioner of Income Tax, Jalandhar

..... Appellant

VERSUS M/s Jagatjit Fasteners Pvt. Ltd., Kapurthala ..... Respondent

CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA

HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Mr.Vivek Sehti, Advocate, for the appellant. Mr.Alok Mittal, Advocate, for the respondent.

******* RAJIVE BHALLA, J. (ORAL) The present reference raises the following questions of law: - “1. Whether, on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in deleting the addition of Rs.1,13,006/- made by the Assessing Officer and upheld by the CIT(A) on account of money paid to M/s Bansal Wire Product and M/s Bansal Traders, Ludhiana as admitted by the assessee?

2.

Whether on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in deleting the addition of Rs.33,926/- made by the Assessing Officer and upheld by Commissioner of Income- tax (Appeals) on account of inflated coal account as admitted by the assessee?

3.

Whether on the facts and in the circumstances of the [ 2 ] case, the learned Income-tax Appellate Tribunal is right in law in deleting the addition of Rs.10,000/- made by the Assessing Officer and upheld by the Commissioner of Income-tax (Appeals) on account of sale of scrap outside the books of accounts, as admitted by the assessee?

4.

Whether on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in deleting the addition of Rs.72,502/- made by the Assessing Officer and upheld by the Commissioner of Income-tax (Appeals), on account of suppression of closing stock of finished and semi-finished goods, as evident from the impounded documents?

5.

Whether on the facts and in the circumstances of the case, the learned Income-tax Appellate Tribunal is right in law in deleting the addition of Rs.31,646/- made by the Assessing Officer and upheld by the Commissioner of Income-tax (Appeals) by allowing the consumption of stores at Rs.94,712/- on the basis of impounded documents against Rs.1,26,358/- claimed by the assessee in the return of income?”

We have heard counsel for the parties, perused the entire paper book including orders passed by the Assessing Officer, Commissioner of Income Tax (Appeals), the Income Tax Appellate Tribunal, and are unable to discern any substantial question of law. The questions framed pertain to additions, deleted by the Income Tax Appellate Tribunal by referring to facts. The questions referred do not refer to any legal principle or provision of law that would require an answer. We are rather surprised at the casual manner in which [ 3 ] five so-called questions of law, which are nothing more than questions of facts, have been placed before us for an answer. In this view of the matter, we decline to answer these questions of fact.

[ RAJIVE BHALLA ] JUDGE 30.10.2013 [ DR. BHARAT BHUSHAN PARSOON ] shamsher JUDGE

Singh Shemsher 2013.11.12 15:53 I attest to the accuracy and integrity of this document Chandigarh

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