C.I.T. UDAIPUR vs. M/S RAJTECH INFRASTRUCTURE P. LTD.

ITA/60/2014HC RajasthanRJHC01018366201413 July 20162 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the appeal did not involve any substantial question of law. Regarding the assessment of the net profit rate, the Court noted that the CIT(A) had determined it at 1% based on an appreciation of facts, and the ITAT had affirmed this finding after examining the factual aspects. Therefore, the Court found no force in the proposed questions relating to this issue. Similarly, concerning the payment of interest expenses, the High Court observed that the ITAT had decided this issue by taking into consideration the facts available on record, and thus, this issue also did not involve any substantial question of law. Consequently, the High Court found no just reason to entertain the appeal.

What were the facts?

The appeal before the High Court was filed by the Commissioner of Income Tax (CIT), Udaipur against an order passed by the Income Tax Appellate Tribunal (ITAT), Jodhpur Bench, dated 23.08.2013. The ITAT had affirmed the order of the Commissioner of Income Tax (Appeals) (CIT(A)), Udaipur, dated 05.11.2012. The CIT(A) had determined the net profit rate of the assessee, M/s Rajtech Infrastructure Pvt. Ltd., at 1%, treating it as a new entrant into the business. The ITAT had affirmed this finding after examining the factual aspects of the case. The appeal also concerned an issue regarding the payment of interest expenses, which the ITAT had decided by considering the facts available on record.

What were the issues?

1. Whether the appeal involves a substantial question of law concerning the assessment of the net profit rate of the assessee, which was determined at 1% by the lower authorities as the assessee was considered a new entrant into the business. 2. Whether the appeal involves a substantial question of law regarding the payment of interest expenses, which was decided by the ITAT based on the facts on record. Assessee's Contentions: The judgment does not record any specific contentions made by the assessee (respondent). The High Court's observation implies that the assessee's position was upheld by the ITAT. Revenue's Contentions: The revenue (appellant) argued that the appeal involved substantial questions of law relating to the assessment of the net profit rate and the issue of interest expenses. However, the High Court found no force in these proposed questions.

AI-generated summary — verify with the full judgment below

(1) IN THE HIGH COURT OF JUDICATURE FOR RAJASTHAN AT JODHPUR D.B. INCOME TAX APPEAL NO.60/2014 (C.I.T., Udaipur Vs. M/s Rajtech Infrastructure Pvt. Ltd.) Date of Order: 13.07.2016 HON'BLE MR. JUSTICE GOVIND MATHUR HON'BLE MR. JUSTICE KAILASH CHANDRA SHARMA Mr. K.K. Bissa for the appellant. Mr. Vikas Balia for the respondent. ******* BY THE COURT: By the judgment impugned dated 23.08.2013, learned Income Tax Appellate Tribunal, Jodhpur Bench Jodhpur affirmed the order passed by the Commissioner of Income Tax (Appeals), Udaipur dated 05.11.2012. The learned Commissioner Income Tax (Appeals), Udaipur by the order aforesaid determined the net profit rate of the assessee as 1% by treating the same as a new entrant into the business. The finding arrived by the Commissioner of Income Tax is based on appreciation of the facts and the Income Tax Appellate Tribunal affirmed the same after examining the factual aspects of the case, as such, this appeal does not involve any substantial question of law and we do not find any force in the proposed questions relating to assessment of net profit rate.

(2) So far as the issue with regard to payment of interest expenses is concerned, that too has been decided by learned Income Tax Appellate Tribunal by taking into consideration the facts available on record, as such this issue also does not involve any substantial question of law. In view of above, we do not find any just reason to entertain this appeal. Accordingly the same is dismissed. [KAILASH CHANDRA SHARMA],J. [GOVIND MATHUR],J. Goyal Ramesh/ Item No.27

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