COMMISSIONER OF INCOME-TAX vs. KEDRAJ AGRICULTURAL INDUSTRIES

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ITR/207/1986HC GujaratGJHC24010831198605 July 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryPartly Allowed

What did the High Court hold?

The High Court answered the question referred to it in the affirmative, in favour of the assessee and against the revenue. The Court stated that it was not necessary to set out the facts in detail as the controversy was concluded by its prior decision in Income Tax Reference No. 138 of 1985 dated 15/06/2001. The ratio decidendi is that for the purpose of calculating relief under Section 80-HH of the Income Tax Act, 1961, the gross total income should include interest paid to partners. The reference stands disposed of accordingly with no order as to costs.

What were the facts?

This is an Income Tax Reference No. 207 of 1986 before the High Court of Gujarat at Ahmedabad. The Income-tax Appellate Tribunal, Ahmedabad Bench 'C', referred a question for the opinion of the High Court. The assessee is Kedraj Agricultural Industries, and the petitioner is the Commissioner of Income-tax. The specific assessment year(s) and the amount in dispute are not recorded in the judgment. The procedural history leading to this reference is not detailed, other than the Tribunal referring the question.

What were the issues?

1. Whether the relief under Section 80-HH of the Income Tax Act, 1961, is required to be worked out with reference to gross total income which included interest to partners? (Question of law) Assessee's contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the affirmative answer suggests the assessee argued that interest to partners should be included in the gross total income for calculating the Section 80-HH deduction. Revenue's contention: The judgment does not record any specific contentions made by the revenue before the High Court. However, the affirmative answer implies the revenue likely argued that interest to partners should be excluded from the gross total income for calculating the Section 80-HH deduction.

Which sections of the Income-tax Act were involved?

Section 80-HH

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 207 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 @ COMMISSIONER OF INCOME-TAX Versus KEDRAJ AGRICULTURAL INDUSTRIES -------------------------------------------------------------- Appearance: 1. INCOME TAX REFERENCE No. 207 of 1986 MR MANISH R BHATT for Petitioner No. 1 SERVED BY RPAD - (N) for Respondent No. 1

--------------------------------------------------------------

CORAM : MR.JUSTICE A.R.DAVE and MR.JUSTICE D.A.MEHTA

Date of decision: 05/07/2001

ORAL JUDGEMENT (Per : MR.JUSTICE D.A.MEHTA)

1 The Income-tax Appellate Tribunal, Ahmedabad Bench 'C' has referred the following question for our opinion :

"Whether, the relief U/s.80-HH of the I.T.Act,1961 is required to be worked out with reference to gross total Income which included interest to partners ?"

2 It is not necessary for us to set out the facts in detail as the controversy stands concluded by the decision of this Court in Income Tax Reference No.138 of 1985 dated 15/06/2001. 3 We, therefore, answer the question referred to us in the affirmative i.e. in favour of the assessee and against the revenue. The Reference stands disposed of accordingly with no order as to costs. (A.R.Dave, J) (D.A.Mehta,J)

m.m.bhatt

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