THE COMMISSIONER OF INCOME TAX JDR vs. M/S PIONER SPORTS P LTD.

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ITR/122/1992HC Punjab & HaryanaPHHC01021961199201 November 2006Author: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal was right in law in not 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's decision was based on the binding precedent set by the Hon'ble Supreme Court in Allied Motors (P) Limited v. Commissioner of Income Tax, reported in 1997 (224) ITR 677. The High Court had previously decided this issue against the revenue and in favour of the assessee in a similar case, ITR No.94 of 1996, The Commissioner of Income tax (C), Ludhiana v. M/s Avery Cycle Inds. Pvt. Limited, Ludhiana, vide its order dated September 5, 2006. Therefore, the question of law was answered against the revenue and in favour of the assessee.

What were the facts?

This case involves a reference to the High Court of Punjab and Haryana at Chandigarh concerning an Income Tax Appellate Tribunal (ITAT) order dated May 30, 1990, for the assessment year 1984-85. The Commissioner of Income Tax, Jalandhar (the revenue), is the applicant, and M/s Pioneer Sports (P) Ltd., Jalandhar City (the assessee), is the respondent. The dispute centers on 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. The ITAT's decision favored the assessee.

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 the assessment year 1984-85 when the amendment was effected from April 1, 1988? Assessee's Contention: The judgment does not record specific contentions made by the assessee. However, the outcome indicates the assessee argued successfully for the non-applicability of the amended provisions to the assessment year in question. Revenue's Contention: The revenue contended that the amended provisions of Section 43B should be applied to the assessment year 1984-85, despite the amendment being effective from April 1, 1988. The revenue sought to challenge the ITAT's decision which ruled against this.

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.122 of 1992 Date of decision: 01.11.2006 The Commissioner of Income Tax, Jalandhar. ---Applicant Vs. M/s Pioneer Sports (P) Ltd., Jalandhar City. -----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 30.05.1990 in I.T.A. No.730(ASR)/87 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 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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