THE C.I.T vs. M/S PUNJAB FINANCIAL CORPN.

PDF · subscribers
ITR/305/1995HC Punjab & HaryanaPHHC01032372199508 November 2006Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 pages
AI SummaryAllowed

What did the High Court hold?

The High Court of Punjab and Haryana at Chandigarh has answered the referred question of law. The Court noted that this specific question had already been decided by them in a previous case, ITR Nos. 53 to 55 of 1990 (The Commissioner of Income Tax, Haryana, Rohtak v. The Haryana Financial Corporation Limited, Chandigarh), decided on 24.10.2006. In that earlier decision, the Court had answered the question against the revenue and in favour of the assessee. Therefore, following its own precedent, the High Court answered the present question against the revenue and in favour of the assessee. The reference was disposed of accordingly.

What were the facts?

The Commissioner of Income Tax, Patiala (Revenue) has referred a question of law to the High Court of Punjab and Haryana at Chandigarh. The reference arises from an order dated 21.9.1992 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, in ITA No.197/Chandi/88. The assessment year in dispute is 1984-85. The matter concerns the eligibility of a deduction under Section 36(1)(viii) of the Income Tax Act, 1961, and the calculation thereof. The assessee is M/s. Punjab Financial Corporation, Chandigarh.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that deduction under section 36(1)(viii) of the Income tax Act, 1961 is allowable at the prescribed percentage of the total income before making deduction under that section? Assessee's Contention: The assessee contends that the deduction under Section 36(1)(viii) should be allowed on the total income computed before the deduction itself is made. Revenue's Contention: The revenue's contention is implied by the reference of the question of law, suggesting they disagree with the Tribunal's finding that the deduction is allowable on the total income before the deduction is applied.

Which sections of the Income-tax Act were involved?

Section 36(1)(viii)

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 ITR No.305 of 1995 Date of decision:8.11.2006 The Commissioner of Income Tax,Patiala ....Petitioner versus M/s. Punjab Financial Corporation, Chandigarh ....Respondent CORAM: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present: Mr. SK Garg Narwana, Advocate, for the revenue. Ms. Rimpi Choudhary, Advocate, for the assessee.

JUDGMENT: Following question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short, 'the Tribunal) arising out of its order dated 21.9.1992 in ITA No.197/Chandi/88, for the assessment year 1984-85:- “Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that deduction under section 36(1)(viii) of the Income tax Act, 1961 is allowable at the prescribed percentage of the total income before making deduction under that section?”

The question referred has been gone into by this Court in ITR Nos.53 to 55 of 1990 (The Commissioner of Income Tax, Haryana, Rohtak v. The Haryana Financial Corporation Limited, Chandigarh), decided on 24.10.2006, wherein the question has been answered against the revenue and in favour of the assessee.

Accordingly, the question is answered against the revenue and in favour of the assessee.

Reference is disposed of accordingly. (Adarsh Kumar Goel)

Judge November 8, 2006 (Rajesh Bindal) 'gs'

Judge

More judgments on Section 36(1)(viii)

All 364 judgments and leading authorities on Section 36(1)(viii) →

Recent GST High Court judgments

Search GST case law →