C.I.T. LDH. vs. KALAWATI PROP.M/S.MOHAN INDL.R

ITR/177/1999HC Punjab & HaryanaPHHC01038619199904 December 2006Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL1 pages
AI SummaryAllowed

What were the facts?

The Revenue, Commissioner of Income Tax (Central), Ludhiana, has filed an Income Tax Reference (ITR) No. 177 of 1999 before the High Court of Punjab and Haryana at Chandigarh. The reference arises from an order dated 18.8.1998 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, in I.T.A.No.1989/Chandi/91. The assessment years in question are 1989-90. The dispute concerns the allowance of deduction under Section 32-AB of the Income Tax Act on new self-assembled machinery.

What did the High Court hold?

The High Court held that the question of law referred to it had already been decided in a previous case involving the same assessee for the assessment year 1988-89. In the case of Commissioner of Income Tax, Patiala Vs. M/S Hindustan Wire Product Ltd., Patiala, Rohtak, ITR No.118 of 1996, decided on 20.9.2006, this Court had answered the identical question against the Revenue and in favour of the assessee. Therefore, following its own precedent, the High Court answered the present reference against the Revenue and in favour of the assessee. The references were disposed of accordingly.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in confirming the order of the CIT(A) directing that the deduction under Section 32-AB of the IT Act be allowed on new self-assembled machinery? The Revenue's contention is implicitly that the Tribunal erred in law by allowing the deduction. The Assessee's contention, as indicated by the Court's reference, is that the deduction should be allowed. The Tribunal confirmed the order of the CIT(A) which allowed the deduction.

Which sections of the Income-tax Act were involved?

Section 32-AB

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.R No.177 of 1999 Date of decision:4.12.2006 Commissioner of Income Tax (Central), Ludhiana...Petitioner Versus Mrs. Kalawati Prop. M/S Mohan Indl.C-8, Focal Point,Rajpura ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE RAJESH BINDAL Present: Mr.S.K.Garg Narwana, Advocate for the Revenue. ****

JUDGMENT Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh arising out of its order dated 18.8.1998 passed in I.T.A.No.1989/Chandi/91, in respect of the assessment years 1989- 90. “Whether on the facts and in the circumstance of the case, the Tribunal was right in law in confirming the order of the CIT(A) directing that the deduction u/s 32- AB of the IT Act, be allowed on new self assembled machinery? The above question has already been gone into in the case of the assessee for the assessment year 1988-89, vide judgment of this Court in Commissioner of Income Tax, Patiala Vs.M/S Hindustan Wire Product Ltd., Patiala , Rohtak, ITR No.118 of 1996, decided on 20.9.2006

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free accountSign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Recent GST High Court judgments

Search GST case law →