THE COMMR. OF INCOME TAX (C) LDH. vs. M/S NAHAR INTERNATIONAL LTD.

ITR/124/1997HC Punjab & HaryanaPHHC01035365199729 October 2013Author: MR. JUSTICE RAJIVE BHALLA,MR. JUSTICE DR. BHARAT BHUSHAN PARSOON3 pages
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What were the facts?

The Commissioner of Income Tax (Central), Ludhiana, filed three appeals/references: ITR No.124 of 1997, ITA No.50 of 2004, and ITR No.90 of 1997, against M/s Nahar International Limited, Ludhiana. These matters were consolidated for disposal as they involved common questions of law. The revenue had filed a petition under Section 256(2) of the Income Tax Act, 1961, for a second question in ITR No.90 of 1997, which was dismissed. The core of the dispute revolves around the applicability of certain provisions of Section 80-I of the Act, as determined by the Income Tax Appellate Tribunal (ITAT) in its order dated May 9, 1997. The ITAT had previously decided similar issues in favour of the assessee for earlier assessment years.

What did the High Court hold?

The High Court decided the reference in terms of its earlier order dated July 2, 2010, passed in ITR No.410 of 1995, which had answered the question regarding Section 80-I(8) against the revenue. Therefore, the present reference was also answered against the revenue on this point. Regarding Section 80-I(6), the Court noted that the revenue had not presented any arguments on this provision before the Tribunal while deciding the quantum appeal. Consequently, the Court found no reason to answer the part of the question relating to Section 80-I(6). The appeals and references were disposed of accordingly. No specific amount in dispute was recorded.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in holding that the provisions of Section 80-I(8) and 80-I(9) are not applicable in this case? (Question of law). The revenue contended that the ITAT's decision regarding Section 80-I(8) and 80-I(9) was incorrect. The assessee argued that the ITAT had consistently ruled in their favour for earlier assessment years (1989-90, 1990-91, 1991-92) on similar questions, and a reference for assessment year 1989-90 (ITR No.410 of 1995) was decided against the revenue. The revenue did not address arguments on Section 80-I(6) before the Tribunal. The Tribunal's order dated May 9, 1997, is under challenge.

Which sections of the Income-tax Act were involved?

Section 80-I(8),Section 80-I(9),Section 80-I(6),Section 256(2)

AI-generated summary — verify with the full judgment below

-1-

IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH

(1)

I.T.R. No.124 of 1997. Decided on:-October 29, 2013. The Commissioner of Income Tax (Central), Ludhiana. .........Applicant.

Versus M/s Nahar International Limited, Ludhiana. ...........Respondent.

(2)

I.T.A. No.50 of 2004. The Commissioner of Income Tax (Central), Ludhiana. .........Appellant.

Versus M/s Nahar International Limited, Ludhiana. ...........Respondent.

(3)

I.T.R. No.90 of 1997. The Commissioner of Income Tax (Central), Ludhiana. .........Applicant.

Versus M/s Nahar International Limited, Ludhiana. ...........Respondent. CORAM: Hon'ble Mr. Justice Rajive Bhalla Hon'ble Mr. Justice Dr. Bharat Bhushan Parsoon.

***** Present:- Mr. Rajesh Katoch, Advocate

for the applicant-appellant. Mr. Sanjay Bansal, Senior Advocate with Ms. Kriteka, Advocate

for the respondent. Yag Dutt 2013.12.13 14:16 I attest to the accuracy and integrity of this document -2- Rajive Bhalla, J (Oral)

By way of this order, we shall dispose of Income Tax Reference No.124 of 1997, Income Tax Appeal No.50 of 2004 and Income Tax Refere

The order continues below.

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