COMMISSIONER OF INCOME TAX vs. VIKSHARA TRADING & INVESTMENTSLTD.

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ITR/1/1999HC GujaratGJHC24025159199907 May 2008Bench: HONOURABLE MR. JUSTICE D.A.MEHTA,HONOURABLE MR. JUSTICE Z.K.SAIYED3 pages
AI SummaryRemanded

What did the High Court hold?

The High Court of Gujarat, in its judgment, noted that the Income Tax Appellate Tribunal (ITAT) had based its decision for Assessment Year 1991-92 on its earlier detailed order for Assessment Year 1993-94. The ITAT had stated that the facts and arguments were identical and, for the reasons given in the previous order, declined to interfere with the CIT(A)'s finding. Consequently, the High Court, in its order dated 07/05/2008, stated that for the reasons given in its judgment of even date in the assessee's own case for Assessment Year 1993-94 (Income Tax Reference No. 3 of 1999), the question referred remains unanswered. The Reference was disposed of accordingly with no order as to costs. The specific reasoning or finding on the merits of the Section 80I deduction is not detailed in this judgment as it relies on a companion case.

What were the facts?

The Commissioner of Income Tax (Revenue) has filed an Income Tax Reference before the High Court of Gujarat at Ahmedabad, challenging an order of the Income Tax Appellate Tribunal (ITAT). The assessee is Vikshara Trading & Investments Ltd. The assessment year in question is 1991-92. The ITAT's decision being challenged is its allowance of the assessee's claim for deduction under Section 80I of the Income Tax Act, 1961. The Tribunal, in its order, stated that the facts and arguments were identical to those discussed in its detailed order in ITA No. 5122/96 for Assessment Year 1993-94, concerning the same assessee. For those reasons, the Tribunal declined to interfere with the CIT(A)'s finding.

What were the issues?

1. Whether, the Appellate Tribunal is right in law and on facts in allowing the claim of the assessee for deduction under section 80I of the Act for Assessment Year 1991-92? Assessee's Contentions: The judgment does not record any specific contentions made by the assessee before the High Court. However, the ITAT's decision, which is being referred, upheld the finding of the CIT(A) allowing the deduction. Revenue's Contentions: The Revenue, through the Commissioner of Income Tax, has sought a reference to the High Court on the question of whether the ITAT was correct in allowing the deduction under Section 80I. The Revenue's argument is implicitly that the ITAT erred in law and/or facts by allowing the deduction, as evidenced by their application for the reference.

Which sections of the Income-tax Act were involved?

Section 80I,Section 256(1)

AI-generated summary — verify with the full judgment below

ITR/1/1999 1/3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD INCOME TAX REFERENCE No. 1 of 1999 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA Sd/-

HONOURABLE MR.JUSTICE Z.K.SAIYED Sd/- ========================================================= 1 Whether Reporters of Local Papers may be allowed to see the judgment ? NO 2 To be referred to the Reporter or not ? NO 3 Whether their Lordships wish to see the fair copy of the judgment ? NO 4 Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5 Whether it is to be circulated to the civil judge ? NO ========================================================= COMMISSIONER OF INCOME TAX - Applicant(s) Versus VIKSHARA TRADING & INVESTMENTSLTD. - Respondent(s) ========================================================= Appearance : MR BB NAIK for Applicant(s) : 1, MR JP SHAH for Respondent(s) : 1, MR MANISH J SHAH for Respondent(s) : 1, MR KETAN H SHAH for Respondent(s) : 1, ========================================================= CORAM : HONOURABLE MR.JUSTICE D.A.MEHTA and HONOURABLE MR.JUSTICE Z.K.SAIYED Date : 07/05/2008 ORAL JUDGMENT (Per : HONOURABLE MR.JUSTICE D.A.MEHTA) 1 The Income Tax Appellate Tribunal, Ahmedabad

ITR/1/1999 2/3 JUDGMENT Bench 'A' has referred the following question under section 256(1) of the Income Tax Act, 1961 (the Act) at the instance of the Revenue. “Whether, the Appellate Tribunal is right in law and on facts in allowing the claim of the assessee for deduction under section 80I of the Act ?” 2 The Assessment Year is 1991-92. In relation to the controversy the Tribunal has observed as under: ”4 The facts and the arguments of both the sides are identical to those discussed by us in our detailed order in ITA No. 5122/96 relating to the A.Y.93-94 in the case of the assessee. For the detailed reasons given therein we decline to interfere and uphold the finding of the CIT(A). This ground accordingly fails and is dismissed.” 3 In the aforesaid circumstances, for the reasons stated in judgment of even date rendered in assessee's own case for Assessment Year 1993-94 in Income Tax Reference No. 3 of 1999 the question is left unanswered. 4 The Reference stands disposed of accordingly with no order as to costs.

ITR/1/1999 3/3 JUDGMENT Sd/- (D.A.Mehta, J.) Sd/- (Z.K.Saiyed, J.) M.M.BHATT

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