COMMISSIONER OF INCOME-TAX vs. ATUL PRODUCTS LIMITED

ITR/203/1986HC GujaratGJHC24010827198610 July 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryDismissed

What were the facts?

This case involves an Income Tax Reference filed by the Commissioner of Income-tax against Atul Products Limited. The reference was made at the instance of the revenue to the High Court of Gujarat at Ahmedabad under Section 256(1) of the Income Tax Act, 1961. The core of the dispute concerns the deletion of disallowance of guest house expenses amounting to Rs. 25,553/- by the Income Tax Appellate Tribunal, Ahmedabad Bench 'A'. The High Court was asked to provide its opinion on whether the Tribunal erred in law by deleting this disallowance.

What did the High Court hold?

The High Court held that the Income Tax Appellate Tribunal was right in deleting the disallowance of guest house expenses amounting to Rs. 25,553/-. The Court reached this conclusion by relying on its prior judgments in the cases of Commissioner of Income Tax v. Maharana Mills Ltd, 208 ITR 972 and Commissioner of Income Tax v. Kaira District Co-operative Milk Producers' Union Limited, 209 ITR 898. The Court found that the question referred to it had been squarely answered in these precedents. Therefore, the question was decided in the negative, in favour of the assessee and against the revenue. The reference was disposed of accordingly with no order as to costs.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal has erred in law in deleting the disallowance of guest house expenses amounting to Rs. 25,553/-? (Question of law). The revenue contended that the Tribunal erred in deleting the disallowance. The assessee contended that the deletion was justified. The High Court noted that this issue had already been answered by the Court in previous judgments.

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 203 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.

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