THE PR. COMMISSIONER OF INCOME TAX, GURGAON vs. M/S MOTOROLA SOLUTIONS INDIA PRIVATE LTD.

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ITA/479/2018HC Punjab & HaryanaPHHC01119352201826 March 2019Author: MR. JUSTICE AJAY KUMAR MITTAL,MRS. JUSTICE MANJARI NEHRU KAUL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the revenue. The Court noted that the issue was no longer res integra and had been concluded by a previous decision of the same Court in ITA-5-2016, decided on 25.4.2016. In that prior judgment, an identical question raised in the present appeal was held not to constitute a substantial question of law. Therefore, following its own precedent, the High Court found no substantial question of law arising from the ITAT's order and dismissed the revenue's appeal. No specific finding was given on the merits of the stay period contravention, as the appeal was dismissed on the preliminary ground of not raising a substantial question of law.

What were the facts?

The Principal Commissioner of Income Tax, Gurgaon (the revenue) filed an appeal under Section 260A of the Income Tax Act, 1961, against an order dated 13.4.2018 passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench. The appeal pertains to assessment year 2012-13 and challenges the ITAT's decision regarding a stay of demand. The procedural history involves a stay granted by the ITAT, which the revenue contends exceeded the statutory period. The assessee is Motorola Solutions India Pvt. Ltd., Gurgaon. The amount in dispute is not specified.

What were the issues?

1. Whether the Hon'ble ITAT has acted in contravention of the Second Proviso of Section 254(2A) of the Income Tax Act, 1961, as the combined period of stay has exceeded 365 days? (Question of law) 2. Whether the order of the ITAT be treated as void-ab-initio in light of the Third Proviso to Section 254(2A) of the Income Tax Act, 1961, which provides that stay of demand stands vacated after the expiry of a period of 365 days, even if delay in disposal of appeal is not attributable to the assessee? (Question of law) Contentions: Assessee: No arguments recorded for the assessee. Revenue: Contended that the ITAT contravened Section 254(2A) by allowing the stay to exceed 365 days, rendering the order void-ab-initio. Relied on the provisions of Section 254(2A) of the Income Tax Act, 1961.

Which sections of the Income-tax Act were involved?

Section 260A,Section 254(2A)

AI-generated summary — verify with the full judgment below

ITA-479-2018 -1- IN THE HIGH COURT OF PUNJAB & HARYANA AT CHANDIGARH ITA-479-2018 (O&M) Date of Decision: 26.3.2019 The Principal Commissioner of Income Tax, Gurgaon ....Appellant. Versus Motorola Solutions India Pvt. Ltd., Gurgaon ...Respondent. CORAM:- HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. HON'BLE MRS. JUSTICE MANJARI NEHRU KAUL. PRESENT: Mr. Arun Sharma, Advocate for Mr. Tajender K. Joshi, Sr. Standing Counsel for the appellant. *** AJAY KUMAR MITTAL, J.

1.

This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 against the order dated 13.4.2018 (Annexure A-V) passed by the Income Tax Appellate Tribunal, Delhi Bench: I-1, New Delhi in SA No. 259/Del/2018 IN ITA No. 1245/DEL/2017, for the assessment year 2012-13, claiming the following substantial questions of law:-

1.

Whether the Hon'ble ITAT has acted in contravention of the Second Proviso of Section 254(2A) of the Income Tax Act, 1961, as the combined period of stay has exceeded 365 days?

2.

Whether the order of the ITAT be treated as void- ab-initio in light of Third Proviso to Section 254 (2A) of the Income Tax Act, 1961 which provides GURBACHAN SINGH 2019.03.27 13:59 I attest to the accuracy and integrity of this document

ITA-479-2018 -2- that stay of demand stands vacated after expiry of a period of 365 days, even if delay in disposal of appeal is not attributable to the assessee?

2.

We have heard learned counsel for the revenue.

3.

It was not disputed by the learned counsel for the appellant- revenue that the matter in issue is no longer res integra and stands concluded by the decision of this Court in ITA-5-2016 decided on 25.4.2016 whereby identical question as claimed in the present appeal, has been held not to be substantial question of law.

4.

For the reasons recorded in the aforementioned appeal, the present appeal is also dismissed. (AJAY KUMAR MITTAL) JUDGE March 26, 2019 (MANJARI NEHRU KAUL) gbs JUDGE Whether Speaking/Reasoned Yes/No Whether Reportable Yes/No GURBACHAN SINGH 2019.03.27 13:59 I attest to the accuracy and integrity of this document

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