M/S PB. WOOL CHAMBER LTD. vs. C.I.T. PATIALA

ITR/243/1995HC Punjab & HaryanaPHHC01032306199527 October 2006Author: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL2 pages

AI SummaryAllowed

What did the High Court hold?

The High Court noted that this specific question of law had already been decided by the Court in previous cases: CIT v. Saraswati Industrial Syndicate Limited, (2001) 257 ITR 779 and The Commissioner of Income Tax (Central) Ludhiana v. M/s. Oswal Woollen Mills Limited, Ludhiana, ITR No.60 of 1988, decided on 19.4.2006. Following these precedents, the Court answered the referred question against the revenue and in favour of the assessee. The ratio decidendi is that if the Court has already ruled on a similar question of law, that ruling will be applied. The operative direction is that the reference is disposed of accordingly, implying the disallowance made by the Tribunal is set aside.

What were the facts?

The assessee, M/s. Punjab Wool Combers Limited, Ludhiana, is in appeal against the order of the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, dated 23.11.1993, in ITA No.1193/Chandi/88. The assessment year in question is 1984-85. The dispute pertains to the disallowance of extra shift allowance on a generator. The revenue's action leading to this appeal is not explicitly detailed, but the ITAT's order is the subject of the reference. The case comes before the High Court of Punjab and Haryana as a reference of a question of law.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in disallowing extra shift allowance on a generator on the ground that it was used only as a standby arrangement in case of power failure and was not used throughout? (Question of law) Assessee's contention: The assessee has referred this question of law to the High Court. No specific arguments are recorded for the assessee in the judgment provided. Revenue's contention: The revenue's position is implicitly that the Tribunal was correct in disallowing the extra shift allowance. No specific arguments are recorded for the revenue in the judgment provided, other than their participation through counsel.

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances

ITR No.243 of 1995 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No.243 of 1995 Date of decision:27.10.2006 M/s. Punjab Wool Combers Limited, Dhandari Kalan, Ludhiana ....Petitioner versus Commissioner of Income Tax, Patiala ....Respondent CORAM: HON'BLE MR. JUSTICE ADARSH KUMAR GOEL HON'BLE MR. JUSTICE RAJESH BINDAL Present: None for the assessee. Mr. SK Garg Narwana, Advocate, for the revenue.

JUDGMENT: Following question of law has been referred for the opinion of this Court at the instance of the assessee by the Income tax Appellate Tribunal, Chandigarh Bench, Chandigarh, arising out of its order dated 23.11.1993 in ITA No.1193/Chandi/88, in respect of assessment year 1984- 85:- “Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in disallowing extra shift allowance on generator on the ground that it was used only as a stand by arrangement in case of power failure and was not used throughout?”

We find that the question has been gone into by this Court in CIT v. Saraswati Industrial Syndicate Limited, (2001) 257 ITR 779 and The Commissioner of Income Tax (Central) Lu

The order continues below.

Read the full judgment

A free account opens 10 full judgments a month. Re-reading one you have already opened does not count again.

Create a free account Sign in

See plans and prices

The summary, the parties, the sections and the citations above are open to everyone and always will be. Only the text of the order and the PDF are metered.

Recent GST High Court judgments

Search GST case law →