C I T vs. M/S HARYANA WAREHOUSING CORP.

PDF · subscribers
ITA/556/2007HC Punjab & HaryanaPHHC01073265200728 April 2008Author: MR. JUSTICE SATISH KUMAR MITTAL,MR JUSTICE RAKESH KUMAR GARG2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the revenue's appeal. The Court noted the submission by the revenue's counsel that this Court had previously decided an identical question in favour of the assessee in two appeals (ITAs No. 242 of 2006 and 367 of 2005) for assessment years 1989-90 and 1993-94. Although those cases involved interest under Section 234B (which replaced Sections 215/217 from April 1, 1989), the revenue conceded that the provisions of Sections 215/217 and 234B are pari materia. Therefore, the authoritative pronouncements of this Court in the earlier appeals were held to be applicable to the present case. The ratio decidendi is that where provisions are pari materia, a decision on one is binding on the other, even if the specific section numbers differ due to legislative changes, provided the underlying principle and mandatory nature of interest levy are similar. The operative direction was the dismissal of the revenue's appeal.

What were the facts?

The Commissioner of Income Tax, Panchkula (the revenue) filed an appeal under Section 260-A of the Income Tax Act, 1961, against an order dated February 24, 2005, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'A'. The ITAT's order pertained to ITA No. 174/CHANDI/2001 for the assessment year 1988-89. The dispute involved the deletion of interest charged under Sections 215/217 of the Income Tax Act, 1961. The revenue's appeal was filed before the High Court of Punjab and Haryana at Chandigarh.

What were the issues?

1. Whether, in the circumstances and facts of the case, the ITAT was justified in deleting interest under Section 215/217 of the Income Tax Act, 1961, when it is mandatory in nature? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee. The High Court's decision was based on the revenue's submission. Revenue's Contentions: The revenue argued that the deletion of interest under Sections 215/217 was unjustified as these provisions are mandatory. However, the revenue's counsel fairly submitted that this Court had previously decided an identical question in favour of the assessee in two appeals (ITAs No. 242 of 2006 and 367 of 2005) concerning assessment years 1989-90 and 1993-94. The revenue acknowledged that in those prior cases, interest was charged under Section 234B, which replaced Sections 215/217 from April 1, 1989. The revenue contended that since the present assessment year (1988-89) predates this change, the question regarding Sections 215/217 was framed. The revenue conceded that the provisions of Sections 215/217 and 234B are pari materia, making the earlier pronouncements applicable.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 215,Section 217,Section 234B

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.A. No. 556 of 2007 DATE OF DECISION : 28.04.2008 The Commissioner of Income Tax, Panchkula .... APPELLANT Versus M/s Haryana Warehousing, Bay No. 15-18, Sector 2, Panchkula ..... RESPONDENT CORAM :- HON'BLE MR. JUSTICE SATISH KUMAR MITTAL HON'BLE MR. JUSTICE RAKESH KUMAR GARG

Present: Mr. Yogesh Putney, Advocate, for the appellant-revenue.

* * * SATISH KUMAR MITTAL , J. ( Oral ) The revenue has filed this appeal under Section 260-A of the Income Tax Act against the order dated 24.2.2005, passed by the Income Tax Appellate Tribunal, Chandigarh Bench `A' Chandigarh in ITA No. 174/CHANDI/2001 for the assessment year 1988-89, raising the following substantial question of law for consideration of this Court : “Whether in the circumstances and facts of the case, the ITAT was justified in deleting interest under Section 215/217 of the Income Tax Act, 1961 when it is mandatory in nature?

Learned counsel for the appellant-revenue very fairly submits that in case of the assessee itself, this Court has decided an identical question in favour of the assessee, by dismissing two appeals (ITAs No. 242

ITA No. 556 of 2007 -2- of 2006 and 367 of 2005), filed by the revenue, which were pertaining to the assessment years 1989-90 and 1993-94. Learned counsel further very fairly points out that though in those cases, the identical question of law was raised by the revenue, but the interest was charged under Section 234B of the Income Tax Act, 1961 (hereinafter referred to as `the Act'), because the said provision was inserted with effect from 1.4.1989 and the old provisions of Sections 215/217 of the Act were ceased to apply with effect from 1.4.1989. Counsel submits that since the assessment in this case is prior to the said date, therefore, the question was framed to the effect as to whether in the circumstances and facts of the case, the ITAT was justified in deleting interest under Section 215/217 of the Income Tax Act, 1961 when it is mandatory in nature. Since the provisions of Sections 215/217 and 234B of the Act are pari materia, therefore, the authoritative pronouncements of this Court in ITAs No. 242 of 2006 and 367 of 2005 are applicable to this case. Accordingly, this appeal is also dismissed.

( SATISH KUMAR MITTAL ) JUDGE April 28, 2008 ( RAKESH KUMAR GARG ) ndj JUDGE

More judgments on Section 260-A

All 2,570 judgments and leading authorities on Section 260-A →

Recent GST High Court judgments

Search GST case law →