C.I.T. JALANDHAR vs. M/S ABOHAR OIL & CHEMICALS

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ITR/86/1992HC Punjab & HaryanaPHHC01022027199201 November 2006Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 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 September 5, 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 is answered against the revenue and in favour of the assessee. The operative direction is to answer the reference accordingly.

What were the facts?

This case involves an Income Tax Reference (ITR) filed by the Commissioner of Income Tax, Bathinda (the revenue) against M/s Abohar Oil & Chemicals, Abohar (the assessee). The reference arises from an order passed by the Income Tax Appellate Tribunal (ITAT), Amritsar Bench, dated September 10, 1990, concerning the assessment year 1984-85. The ITAT's order is under challenge. The specific amount in dispute is not stated. The procedural history involves the ITAT referring a question of law to the High Court for its opinion.

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 43-B of the Income-tax Act, 1961 to the proceedings relating to the assessment year 1984-85 when the amendment was effected from 1.4.1988? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The revenue contends that the amended provisions of Section 43-B of the Income-tax Act, 1961, should not be applied to the assessment year 1984-85, as the amendment came into effect from April 1, 1988. The revenue relies on the ITAT's order which is under challenge.

Which sections of the Income-tax Act were involved?

Section 43-B

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.86 of 1992 Date of decision: 01.11.2006 The Commissioner of Income Tax, Bathinda. ---Applicant Vs. M/s Abohar Oil & Chemicals, Abohar. -----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 10.09.1990 in I.T.A. No.511(ASR)/1990 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 43-B of the Income-tax Act, 1961 to the proceedings relating to the assessment 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 01, 2006 ( RAJESH BINDAL ) ashwani JUDGE

I.T.R. No.48 of 1993 Pag e

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