COMMISSIONER OF INCOME TAX vs. JAMNAGAR JILLA SAHAKARI KHARIDVECHAN SANGH LTD.

ITR/251/1994HC GujaratGJHC24020327199413 December 2005Author: HONOURABLE MR. JUSTICE D.A.MEHTA,HONOURABLE MS. JUSTICE HARSHA DEVANI4 pages
AI SummaryAllowed

What were the facts?

The Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench 'B', referred a question to the High Court of Gujarat concerning the grant of deduction under Section 80P(2)(a)(iv) of the Income Tax Act, 1961. The assessment years in question were 1982-83 and 1983-84, corresponding to accounting periods ending June 30, 1981, and June 30, 1982, respectively. The ITAT had set aside the order of the Commissioner of Income Tax (Appeals) and directed the Income Tax Officer to pass appropriate orders, relying on its earlier decision in the assessee's own case for Assessment Year 1981-82. The Revenue, as the applicant, challenged this decision.

What did the High Court hold?

The High Court of Gujarat, applying the ratio of its own earlier decision rendered in Income Tax Reference No. 58 of 1994 (which dealt with the assessee's own case for A.Y. 1981-82), answered the referred question in the affirmative, in favour of the assessee and against the Revenue. The Court found that the controversy in issue had been concluded in favour of the assessee by its prior judgment. Therefore, the ITAT's direction to grant the deduction under Section 80P(2)(a)(iv) was upheld. The reference was disposed of accordingly, with no order as to costs. No issue was expressly left undecided.

What were the issues?

1. Whether the Appellate Tribunal was right in law and on facts in setting aside the order made by the Commissioner of Income Tax (Appeals) and directing the Income Tax Officer to pass appropriate orders relating to the grant of deduction under Section 80P(2)(a)(iv), considering its earlier decision in the assessee's own case for A.Y. 1981-82 (ITA No. 818/Ahd/1985)? Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which was upheld, implies the assessee argued for the grant of deduction under Section 80P(2)(a)(iv) based on the precedent set in its own case for A.Y. 1981-82. Revenue's Contention: The Revenue, as the applicant, drew attention to the fact that the ITAT's earlier decision for A.Y. 1981-82, which was followed, had been carried before the High Court by way of a reference (Income Tax Reference No. 58 of 1994). The Revenue implicitly challenged the ITAT's reliance on this decision without awaiting the High Court's determination in the said reference.

Which sections of the Income-tax Act were involved?

Section 80P(2)(a)(iv),Section 256(2)

AI-generated summary — verify with the full judgment below

ITR/251/1994 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 251 of 1994 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA HONOURABLE MS.JUSTICE H.N.DEVANI ============================================================== 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ============================================================== COMMISSIONER OF INCOME TAX - Applicant(s)

Versus JAMNAGAR JILLA SAHAKARI KHARIDVECHAN SANGH LTD. - Respondent(s) ============================================================== Appearance : MR MANISH R BHATT for Applicant( SERVED BY RPAD - (N) for Respondent(s) : 1, ================================================================== CORAM :  HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MS.JUSTICE H.N.DEVANI Date : 12/12/2005 ORAL JUDGMENT (Per : HONOURABLE MS.JUSTICE

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