COMMISSIONER OF INCOME TAX-I vs. GUJARAT ALKALIES & CHEMICALS LTD.

TAXAP/1063/2006HC GujaratGJHC24038039200626 November 2014Author: HONOURABLE MR. JUSTICE KS JHAVERI,HONOURABLE MR. JUSTICE K.J.THAKER4 pages
AI SummaryAllowed

Facts

The assessee, Gujarat Alkalies & Chemicals Ltd., filed its return for assessment year 2003-04 declaring nil income. The Assessing Officer charged interest of Rs. 2,71,968 and Rs. 22,11,682. The CIT(A) dismissed the assessee's appeal. The Income Tax Appellate Tribunal, Ahmedabad, allowed the assessee's appeal by an order dated 30.12.2005. The revenue has appealed this order. The High Court admitted the appeal and formulated a substantial question of law.

Held

The High Court allowed the appeal filed by the revenue. The Court noted that the question of law involved in this appeal was already concluded by this Court's order dated 10.03.2014 in Tax Appeal No. 34 of 2003, which relied on the Supreme Court's decision in Joint Commissioner of Income-Tax Vs. Rolta India Ltd. (supra) in favour of the revenue. The revenue's advocate pointed out that the Vadilal Enterprises case, on which the Tribunal relied, had attained finality in Tax Appeal No. 34 of 2003. The assessee's advocate did not dispute the factual scenario. The Court found that the question posed in the appeal was answered in favour of the revenue and against the assessee, reversing the decision of the Tribunal. The operative direction was to allow the appeal and answer the question of law in favour of the revenue.

Key Issues

1. Whether, on the facts and in the circumstances of the case and in law, the appellate Tribunal was justified in deleting the interest charged under Sections 243B and 243C by relying on its decision in Vadilal Enterprises (covered by Section 115J), when the present case is covered under Section 115JB and by virtue of sub-Section 5 of Section 115JB, the interest under Sections 243B and 243C is chargeable? Assessee's contention: Not recorded in the judgment. Revenue's contention: The question of law is concluded by this Court's order dated 10.03.2014 in Tax Appeal No. 34 of 2003, which relied on the Apex Court's decision in Joint Commissioner of Income-Tax Vs. Rolta India Ltd. (2011) 330 ITR 470 (SC) in favour of the revenue. The case of Vadilal Enterprises, relied upon by the Tribunal, has attained finality in Tax Appeal No. 34 of 2003.

Sections Cited

243B, 243C, 115J, 115JB

AI-generated summary — verify with the full judgment below

O/TAXAP/1063/2006 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1063 of 2006

FOR APPROVAL AND SIGNATURE:

HONOURABLE MR.JUSTICE KS JHAVERI

and HONOURABLE MR.JUSTICE K.J.THAKER =========================================================== 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-I....Appellant(s) Versus GUJARAT ALKALIES & CHEMICALS LTD.....Opponent(s) ================================================================ Appearance: MR. M.M. BHATT, LEARNED SENIOR ADVOCATE WITH MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1 MR MANISH J SHAH, ADVOCATE for the Opponent(s) No. 1 ==============================================

The order continues below.

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