ADPRINT SERVICES LTD vs. COMMISSIONER OF INCOME TAX

ITR/43/1986HC GujaratGJHC24010667198611 June 2001Author: HONOURABLE MR. JUSTICE ANIL R. DAVE,HONOURABLE MR. JUSTICE D.A.MEHTA2 pages
AI SummaryRemanded

What were the facts?

The assessee, Adprint Services Ltd., is challenging an order of the Income Tax Appellate Tribunal (ITAT). The dispute concerns the disallowance of advertisement expenditure amounting to Rs. 36,532/-. This reference was made to the High Court of Gujarat at Ahmedabad under Section 256(2) of the Income-tax Act, 1961, at the instance of the assessee. The procedural history indicates that a similar question was raised in I.T.R. No. 292/84, which was decided on April 29, 1999.

What did the High Court hold?

The High Court declined to answer the question referred to it. The Court noted that a similar question had been raised in I.T.R. No. 292/84 and decided on April 29, 1999. In that prior case, the High Court had held that the question concerning advertisement expenditure was in the nature of a question of fact. The Court's view was that the answer to such a question depended on the conclusions of fact reached by the Tribunal, and therefore, it was not a question of law. As the facts of the present case were similar to the prior reference, the High Court respectfully followed its earlier judgment and declined to answer the question, stating it pertains to a question of fact. The reference was disposed of accordingly.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in disallowing advertisement expenditure under Section 37(3A) of the Income-tax Act, 1961, to the tune of Rs. 36,532/-? Assessee's Contention: The assessee, through its learned advocate Shri R.K. Patel, sought to have this question answered. The specific arguments made by the assessee are not detailed in the judgment. Revenue's Contention: The respondent-department, represented by learned advocate Shri Akil Qureshi, was also heard. The judgment does not record specific arguments made by the revenue.

Which sections of the Income-tax Act were involved?

Section 37(3A),Section 256(2)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

INCOME TAX REFERENCE No 43 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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