C.I.T. ASR. vs. M/S JIWAN SINGH

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ITR/1/1995HC Punjab & HaryanaPHHC01032150199508 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 Tribunal was not right in applying the amended provisions of Section 43B of the Income-tax Act, 1961, to the assessment year 1984-85, as the amendment was effective from April 1, 1988. The Court found that this issue was 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 precedent, the Court had previously decided a similar issue against the revenue and in favour of the assessee 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 of law was answered against the revenue and in favour of the assessee. The operative direction was to answer the reference accordingly.

What were the facts?

The Commissioner of Income Tax, Amritsar (the revenue) filed an Income Tax Reference (ITR) No. 1 of 1995 before the High Court of Punjab and Haryana at Chandigarh. The reference arose from an order dated 13.08.1993 passed by the Income Tax Appellate Tribunal, Amritsar Bench, in I.T.A. No.990(ASR)/1988 concerning assessment year 1984-85. The assessee is M/s Jiwan Singh Pritam Singh, Tarn Taran. The core of the dispute concerns the applicability of amended provisions of Section 43B of the Income-tax Act, 1961, to the assessment year 1984-85, when the amendment was effective from April 1, 1988.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal is right in law in applying the amended provisions of section 43B of the Income-tax Act, 1961 to the proceedings relating to Asstt. Year 1984/85 when the amendment was effected from 1.4.1988? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, by implication, the assessee would have argued that the amended provisions of Section 43B should not be applied retrospectively to the assessment year 1984-85. Revenue's Contention: The revenue contended that the amended provisions of Section 43B of the Income-tax Act, 1961, should be applied to the assessment year 1984-85, despite the amendment being effective from April 1, 1988. The revenue sought to challenge the Tribunal's decision to the contrary.

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.1 of 1995 Date of decision: 08.11.2006 The Commissioner of Income Tax, Amritsar. ---Applicant Vs. M/s Jiwan Singh Pritam Singh, Tarn Taran. -----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 13.08.1993 in I.T.A. No.990(ASR)/1988 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 applying the amended provisions of section 43B of the Income-tax Act, 1961 to the proceedings relating to Asstt. Year 1984/85 when the amendment was effected 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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