COMMISSIONER OF INCOME TAX vs. MIHIR TEXTILE LTD

ITR/168/1986HC GujaratGJHC24010792198610 July 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryAllowed

What were the facts?

This case involves an Income Tax Reference filed by the revenue (Commissioner of Income Tax) at the instance of the Income Tax Appellate Tribunal, Ahmedabad Bench 'B'. The reference concerns a decision made by the CIT (Appeals) which was confirmed by the Tribunal. The assessee is Mihir Textile Ltd. The dispute revolves around the allowance of a claim of Rs. 65,589/- made by the assessee, representing fees paid for obtaining technical services. The assessment year(s) are not explicitly stated in the provided text.

What did the High Court hold?

The High Court answered the referred question in the affirmative, in favour of the assessee and against the revenue. The Court's reasoning was based on the law laid down in its own previous judgment in the case of Commissioner of Income Tax v. Shri Ashoka Mills Ltd., reported in 218 ITR 526. The principle established in that precedent case was applied to the facts of the present reference. The operative direction was to dispose of the reference accordingly, meaning the Tribunal's decision allowing the claim was upheld. No issue was expressly left undecided.

What were the issues?

1. Whether the Appellate Tribunal is right in law and on facts in confirming the view taken by CIT (Appeals) in allowing the claim of Rs. 65,589/- being fees paid for obtaining technical services. The revenue contends that the Tribunal erred in law and facts by allowing the claim. The assessee's contention is not explicitly recorded, but their position is that the claim for technical service fees should be allowed. The Tribunal's decision is under challenge. The provision of law that this issue turns on is implicitly Section 37 of the Income Tax Act, 1961, concerning expenditure not being capital expenditure and not being personal expenditure, laid out or expended for the purposes of the business or profession.

Which sections of the Income-tax Act were involved?

Section 256(1)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 168 of 1986

For Approval and Signature:

Hon'ble MR.JUSTICE A.R.DAVE and Hon'ble MR.JUSTICE D.A.MEHTA

============================================================ 1. Whether Reporters of Local Papers may be allowed : NO to see the judgements?

2.

To be referred to the Reporter or not? : NO 3. Whether Their Lordships wish to see the fair copy : NO of the judgement?

4.

Whether this case involves a substantial question : NO of law as to the interpretation of the Constitution of India, 1950 of any Order made thereunder?

5.

Whether it is to be circulated to the Civil Judge? : NO ----

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

More judgments on Section 256(1)

All 370 judgments and leading authorities on Section 256(1) →

Recent GST High Court judgments

Search GST case law →