COMMISSIONER OF INCOME TAX vs. GUJARAT SHIP TRADING CORPN.

ITR/230/1994HC GujaratGJHC24020306199416 November 2005Author: HONOURABLE MR. JUSTICE D.A.MEHTA,HONOURABLE MS. JUSTICE HARSHA DEVANI4 pages
AI SummaryDismissed

What were the facts?

The Commissioner of Income Tax (Revenue) has referred a question of law to the High Court of Gujarat concerning Assessment Year 1986-87, for the accounting period ending June 30, 1985. The Income Tax Appellate Tribunal (ITAT) had directed the Assessing Officer (AO) to allow relief under Sections 80HHA and 80I to the assessee, Gujarat Ship Trading Corporation, considering it engaged in manufacturing activity. The Revenue pointed out that an identical question for Assessment Year 1985-86 in the assessee's own case (Income Tax Reference No. 177 of 1992) was decided by the High Court on January 22, 2004, in favour of the Revenue, following the decision in CIT v. Vijay Ship Breaking Corporation (2003) 261 ITR 113. Despite being served, the assessee did not appear before the High Court.

What did the High Court hold?

The High Court answered the question referred in the negative, in favour of the Revenue and against the assessee. The Court reasoned that an identical issue for the Assessment Year 1985-86 in the assessee's own case had already been decided by the High Court on January 22, 2004. That decision followed the High Court's earlier ruling in Commissioner of Income Tax v. Vijay Ship Breaking Corporation (2003) 261 ITR 113. Therefore, for the current Assessment Year 1986-87, the same reasoning applied. The Tribunal's direction to allow relief under Sections 80HHA and 80I was set aside. The reference was disposed of accordingly.

What were the issues?

1. Whether the appellate tribunal is right in law and on facts in directing the AO to allow relief under Section 80HHA and Section 80I considering the assessee as being engaged in manufacturing activity? (Question of law and fact, concerning Sections 80HHA and 80I of the Income Tax Act, 1961). Assessee's contentions: Not recorded as there was no appearance. Revenue's contentions: The Revenue argued that an identical question for a prior assessment year in the assessee's own case was decided in its favour by the High Court. It relied on the High Court's decision in Commissioner of Income Tax v. Vijay Ship Breaking Corporation (2003) 261 ITR 113.

Which sections of the Income-tax Act were involved?

Section 256(1),Section 80HHA,Section 80I

AI-generated summary — verify with the full judgment below

ITR/230/1994 1/4 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 230 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 GUJARAT SHIP TRADING CORPN. - Respondent(s) ================================================= Appearance : MR MANISH R BHATT for Applicant(s) : 1, SERVED BY RPAD - (N) for Respondent(s) : 1, ================================================

ITR/230/1994 2/4 JUDGMENT CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MS.JUSTICE H.N.DEVANI Date : 16/11/2005 ORAL JUDGMENT (Per : HONOURABLE MS.JUSTICE H.N.DEVANI) 1 The Income Tax Ap

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