GUPTA INTERNATIONAL SHIV NAGAR vs. COMMISSIONER OF INCOME TAX KARNAL

ITA/160/2011HC Punjab & HaryanaPHHC01095477201113 August 2012Author: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE GURMEET SINGH SANDHAWALIA3 pages
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What were the facts?

The appeals before the Punjab and Haryana High Court were filed by the assessee, Gupta International, through its partner Mr. Pawan Gupta, against the Commissioner of Income Tax, Karnal. The appeals, ITA Nos. 160 and 161 of 2011, arose from an order of the Income Tax Appellate Tribunal dated December 4, 2009. The assessee sought to challenge the Tribunal's decision on specific questions of law concerning the computation of deductions under the Income Tax Act, 1961. The assessment years are not explicitly stated in the provided text. The core of the dispute revolves around the exclusion of DEPB profits and the restriction of deductions under Section 80HHC, read with other relevant sections.

What did the High Court hold?

The High Court decided the two appeals by addressing each question of law. For the first question, concerning the exclusion of DEPB profit for deduction computation under Section 28(iiid) read with Section 80HHC, the Court accepted the assessee's submission. It was agreed that this issue should be remanded back to the Assessing Officer for re-adjudication. This decision was based on the Supreme Court's ruling in Topman Exports Vs. Commissioner of Income Tax. For the second question, regarding the restriction of deductions under Section 80HHC read with Sections 80IA(9) and 80IB(13), the Court found that the issue was concluded against the assessee. The assessee's counsel conceded that the matter was settled against the assessee by a prior decision of the High Court in ITA No.496 of 2007. Therefore, this question was answered against the assessee. The appeals were disposed of accordingly, with one issue remanded and the other decided against the assessee.

What were the issues?

The Tribunal was asked to decide the following substantial questions of law: 1. Whether, on a true and correct interpretation of Section 28(iiid) read with Section 80HHC, the "profit" or the whole amount of DEPB is to be excluded for the computation of deduction. 2. Whether, on a true and correct interpretation of Section 80HHC read with Section 80IA(9) and Section 80IB(13), the Tribunal erred in restricting the claim of deductions under the Act. The assessee's contentions were: For issue 1, the assessee submitted that this issue requires to be remanded back to the Assessing Officer for re-adjudication in view of the decision of the Hon'ble Apex Court in Topman Exports Vs. Commissioner of Income Tax, (2012) 67 DTR (SC) 185. For issue 2, the assessee fairly submitted that this issue stands concluded against the assessee in view of the decision of the High Court in ITA No.496 of 2007, although the matter was pending before the Hon'ble Supreme Court. The revenue did not dispute the assessee's submission regarding the remand for issue 1. For issue 2, the revenue implicitly supported the High Court's decision as the assessee conceded that the matter was settled against them by this Court's decision.

Which sections of the Income-tax Act were involved?

Section 28(iiid),Section 80HHC,Section 80IA(9),Section 80IB(13),Section 260A

AI-generated summary — verify with the full judgment below

IN THE PUNJAB AND HARYANA HIGH COURT AT CHANDIGARH Date of Decision: August 13, 2012 Gupta International through its Partner Mr. Pawan Gupta

....appellant Versus Commissioner of Income Tax, Karnal

.... Respondent ITA No.161 of 2011 (O & M) Gupta International through its Partner Mr. Pawan Gupta

....appellant Versus Commissioner of Income Tax, Karnal

.... Respondent CORAM: HON'BLE MR. JUSTICE AJAY KUMAR MITTAL HON'BLE MR. JUSTICE G.S. SANDHAWALIA Present: Mr. Pankaj Jain, Advocate for the appellant(s). Mr. Yogesh Putney, Advocate, for the respondent(s). **** AJAY KUMAR MITTAL, J. This order shall dispose of two appeals bearing ITA Nos.160 and 161 of 2011 as counsel for the parties state that similar questions are involved in both the appeals.

2.

In ITA No.160 of 2011 filed under Section 260A of the Income Tax Act, 1961 (for short 'the Act'), arising out of an appeal bearing ITA No.3841/DEL/ 2007 against the order passed by the Income Tax Appellate Tribunal (for short 'the Tribunal') dated 04.12.2009, the assessee has claimed the foll

The order continues below.

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