THE PRINCIPAL COMMISSIONER OF INCOME-TAX, VADODARA-1 vs. GUJARAR ENERGY TRANSMISSION CORPORATION LTD.
What did the High Court hold?
The High Court dismissed the Tax Appeal. The Court noted that the question of law proposed by the revenue in the present appeal was identical to the question of law proposed in Tax Appeal No. 186 of 2020, which was filed by the same revenue against the same assessee for Assessment Year 2007-08. Tax Appeal No. 186 of 2020 had been dismissed by this Court vide its order dated September 11, 2020. Following the precedent set in the earlier appeal, the High Court held that the present appeal should also fail and accordingly dismissed it. The operative direction was the dismissal of the appeal.
What were the facts?
The Revenue, Principal Commissioner of Income-Tax, Vadodara-1, filed a Tax Appeal under Section 260A of the Income Tax Act, 1961, challenging an order passed by the Income Tax Appellate Tribunal (ITAT) on September 5, 2019, for Assessment Year 2009-10. The ITAT had upheld the order of the Commissioner of Income-Tax (Appeals) in deleting an addition made by the Assessing Officer. The addition pertained to capital grant treated at 15% of the total grant of Rs. 25,000 Lacs. The Revenue also filed a Civil Application for condonation of a 3-day delay in filing the Tax Appeal. The High Court condoned the delay for the purpose of disposing of the appeal.
What were the issues?
1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal has erred in law and on facts in upholding the order of the CIT(A) in deleting the addition made by the Assessing Officer on account of capital grant being @ 15% of total grant of Rs. 25,000 Lacs? (Question of law/mixed law and fact, concerning the treatment of capital grant). Assessee's Contentions: Not recorded in the judgment. Revenue's Contentions: The revenue argued that the ITAT erred in law and facts by upholding the deletion of the addition made by the Assessing Officer regarding the capital grant. They proposed the aforementioned question of law for the High Court's consideration. The revenue relied on the fact that this appeal raised the same question of law as a previous appeal filed by the revenue concerning the same assessee for Assessment Year 2007-08.
Which sections of the Income-tax Act were involved?
AI-generated summary — verify with the full judgment below
Cause title — parties, addresses and appearances
ORAL ORDER
(PER : HONOURABLE MR. JUSTICE J.B.PARDIWALA) ORDER IN CIVIL APPLICATION :- This is an application at the instance of the revenue seeking condonation of delay of 3 days in filing the Tax Appeal. According to Mr. Varun Patel, the learned Sr. Standing Counsel appearing for the revenue, there is no delay. We do not propose to go into this issue as otherwise also the Tax Appeal deserves to be dismissed. We proceed on the footing that, there is a delay of 3 days and the same stands condoned for the sufficient cause assigned in the application. Civil The Application stands disposed of accordingly. ORDER IN TAX APPEAL
This tax appeal under Section 260 A of the Income Tax Act, 1961 (Act, 1961 for short) is at the instance of the revenue and is C/CA/2489/2020 ORDER directed against the order passed by the Income Tax Appellate Tribunal dated 05.09.2019 in the ITA No.652/Ahd/2013 for the A.Y. 2009-10. 2. The revenue has proposed the following question of law for the consideration of this Court : “(a) whether on the facts and in circumstances of the case, the Income Tax Appellate Tribunal has erred in law and on facts in upholding the order of the CIT(A) in deleting the addition made by the Assessing Officer on account of capital grant being @ 15 % of total grant of Rs.25,000 Lacs?
We have heard Mr. Varun K. Patel, the learned Sr. Standing Counsel appearing for the revenue and Mr. Uchit Sheth, the learned counsel appearing for the respondent – assessee on caveat.
The question of law as proposed by the revenue in the present appeal is the very same question of law as was proposed in the case of the very same assessee in the Tax Appeal No.186 of 2020. The Tax Appeal No.186 of 2020 for the assessment year 2007-08 came to be dismissed by this Court vide order dated 11.09.2020. 5. In view of the above, this appeal should also fail and hereby fails. Appeal stands dismissed accordingly. (J. B. PARDIWALA, J) (ILESH J. VORA,J) A. B. VAGHELA/SUCHIT
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