C.I.T. ASR. vs. M/S DOABA AUTOMOBILE ASR.

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ITR/3/1995HC Punjab & HaryanaPHHC01032365199508 November 2006Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL1 pages
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What did the High Court hold?

The High Court held that the issue is covered against the revenue and in favour of the assessee by the judgment of the Hon'ble Supreme Court in Allied Motors (P) Limited v. Commissioner of Income Tax, reported in 1997 (224) ITR 677. Following this Supreme Court precedent, the High Court had previously decided a similar issue against the revenue and in favour of the assessee in its order dated 05.09.2006 in ITR No.94 of 1996, The Commissioner of Income tax (C), Ludhiana v. M/s Avery Cycle Inds. Pvt. Limited, Ludhiana. Therefore, the question of law referred to the High Court was answered against the revenue and in favour of the assessee. The operative direction is to answer the reference accordingly.

What were the facts?

The Income Tax Appellate Tribunal (ITAT), Amritsar Bench, passed an order on 06.10.1993 in I.T.A. No.803/ASR/1989 concerning the assessment year 1984-85. The Commissioner of Income Tax, Amritsar (the revenue), being aggrieved, referred a question of law to the High Court of Punjab and Haryana at Chandigarh. The dispute revolves around the applicability of an amended provision of Section 43B of the Income-tax Act, 1961, to the assessment year 1984-85, when the amendment was introduced from April 1, 1988. The amount in dispute is not specified.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in delaying the amended provision of section 43B of the Income-tax Act, 1961, to the proceedings relating to Assessment Year 1984-85 when the amendment was introduced from 1.4.1988? The revenue contended that the amended provision of Section 43B should be applied. The assessee contended that the amendment, introduced from 1.4.1988, should not be applied retrospectively to the assessment year 1984-85. The Tribunal had ruled in favour of the assessee.

Which sections of the Income-tax Act were involved?

Section 43B

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.3 of 1995 Date of decision: 08.11.2006 The Commissioner of Income Tax, Amritsar. ---Applicant Vs. M/s Doaba Automobiles, Amritsar. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE RAJESH BINDAL Present: Dr. N.L. Sharda, Advocate for the revenue. -----

ORDER: Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Amritsar Bench, Amritsar, arising out of its order dated 06.10.1993 in I.T.A. No.803/ASR/1989 in respect of assessment year 1984-85:- “Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in delaying the amended provision of section 43B of the Income-tax Act, 1961 to the proceedings relating to Asstt. Year 1984-85 when the amendment was introduced from 1.4.1988?” We find that the issue is covered against the revenue and in favour of the assessee by the judgment of Hon’ble Supreme Court in Allied Motors (P) Limited v. Commissioner of Income Tax

1997 (224) ITR 677. Following the above judgment of the Hon’ble Supreme Court, we have decided the issue against the revenue and in favour of the assessee vide our order dated 5.9.2006 in ITR No.94 of 1996, The Commissioner of Income tax (C), Ludhiana v. M/s Avery Cycle Inds. Pvt. Limited, Ludhiana..

Accordingly, the question is answered against the revenue and in favour of the assessee. ( ADARSH KUMAR GOEL ) JUDGE November 08, 2006 ( RAJESH BINDAL ) ashwani JUDGE

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