C I T, JAIPUR vs. M/S. BHILWARA WOOLKTEX

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ITR/9/1991HC RajasthanRJHC02001665199124 March 2015Author: SUNIL AMBWANI,AJIT SINGH2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the assessee company, M/s. Bhilwara Wooltex (P) Ltd., had been wound up, its assets sold, and creditors paid off. The Court observed that the question of law was specific to the company and would not affect future assessments. Furthermore, the tax effect of the decision was considered very low. Given these circumstances, and that the question of law was not of a nature requiring a decision for general application, the Court decided not to answer the reference. The reference was returned unanswered, and accordingly disposed of.

What were the facts?

This is an Income Tax Reference filed by the Commissioner of Income-tax, Jaipur, against M/s. Bhilwara Wooltex (P) Ltd., Bhilwara, concerning assessment years not specified. The reference was made by the Income Tax Appellate Tribunal, Jaipur Bench, on 30.01.1990. The assessee company was ordered to be wound up by the High Court on 03.07.1992, and an Official Liquidator was appointed. The company's assets have been sold, and creditors have been paid off. The tax effect of the reference is stated to be low.

What were the issues?

1. Whether, on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the amount of subsidy is not to be deducted from the value of assets for the purpose of depreciation? (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: Not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 256(1)

AI-generated summary — verify with the full judgment below

1 IN THE HIGH COURT OF JUDICATURE FOR RAJASHAN AT JAIPUR BENCH, JAIPUR :: ORDER :: D.B. INCOME TAX REFERENCE NO.9/1991 The Commissioner of Income-tax, Jaipur Vs. M/s.Bhilwara Wooltex (P) Ltd., Bhilwara 24.03.2015 HON'BLE THE CHIEF JUSTICE MR. SUNIL AMBWANI HON'BLE MR. JUSTICE AJIT SINGH Ms.Parinitoo Jain for the applicant. Ms.Sonal Singh for the Official Liquidator. ******** Reportable

1.

This Income Tax Reference under Section 256(1) of the Income Tax Act was received from the Income Tax Appellate Tribunal, Jaipur Bench, Jaipur on 30.01.1990, to decide the following question of law:- “Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the amount of subsidy is not to be deducted from the value of assets for the purpose of depreciation?”

2.

Learned counsel appearing for the Official Liquidator informs that M/s.Bhilwara Wooltex Pvt.Ltd., Bhilwara was wound up by an order passed by this Court on 03.07.1992, on which an Official Liquidator was appointed to act as Liquidator of the Company. The entire assets of the Company have been sold, and that, the creditors have been paid off.

3.

The question of law, in our opinion, is specific to the Company, and will not affect the assessment to be made, in respect of the Company, in future.

2

4.

The tax effect, of the decision of the reference is also very low, and considering the fact that the question of law is not of a nature, which may require decision, for any general application, the Income Tax Reference and returned unanswered.

5.

This Income Tax Reference is accordingly disposed of. (AJIT SINGH),J. (SUNIL AMBWANI),CJ. Skant/-, Proof Reader All the corrections made in the judgment/order have been incorporated in the judgment/order being emailed. Shashi Kant Gaur, Proof Reader

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