COMMISSIONER OF INCOME TAX vs. UTI BANK LTD.
What did the High Court hold?
The High Court dismissed the appeal filed by the revenue on the ground of the smallness of the amount involved. The Court noted that the revenue effect was less than Rs. 1 lakh. Citing CBDT Instruction No. 1979 dated March 27, 2000, and Instruction No. 02 of 2005, the Court held that the revenue ought not to have filed an appeal when the total revenue effect was below Rs. 1 lakh. Consequently, the substantial question of law was answered in favour of the assessee and against the revenue. The appeal was not entertained. Liberty was granted to revive the appeal in case of difficulty.
What were the facts?
The appeal was filed by the Commissioner of Income Tax (appellant-revenue) against the judgment and order dated March 28, 2006, passed by the Income-tax Appellate Tribunal (ITAT), Ahmedabad Bench. The ITAT's order was in ITA No. 26/Ahd/2003 for the assessment year 1999-2000. The High Court of Gujarat at Ahmedabad admitted the appeal on July 9, 2007, and framed a substantial question of law. The dispute pertains to the deletion of an addition made by the Assessing Officer to the chargeable interest in respect of lease rental income.
What were the issues?
1. Whether the Appellate Tribunal is right in law and on facts in deleting the addition made to the chargeable interest u/s 2(7) of the Interest Tax Act, by the Assessing Officer in respect of lease rental income? Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the deletion of the addition by the ITAT implies the assessee's position was that the lease rental income was not chargeable to interest tax. Revenue's Contention: The revenue contended that the Assessing Officer was correct in making the addition to the chargeable interest in respect of lease rental income, and the ITAT erred in deleting it.
Which sections of the Income-tax Act were involved?
Section 2(7) of the Interest Tax Act
AI-generated summary — verify with the full judgment below
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O/TAXAP/1443/2006 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 1443 of 2006
FOR APPROVAL AND SIGNATURE:
HONOURABLE MR.JUSTICE KS JHAVERI
and HONOURABLE MR.JUSTICE K.J.THAKER
================================================================ 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 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 ? 5 Whether it is to be circulated to the civil judge ? ================================================================ COMMISSIONER OF INCOME TAX....Appellant(s) Versus UTI BANK LTD.....Opponent(s) ================================================================ Appearance: MR NITIN K MEHTA, ADVOCATE for the Appellant(s) No. 1 MR RK PATEL, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE KS JHAVERI and HONOURABLE MR.JUSTICE K.J.THAKER Page 1 of 3
O/TAXAP/1443/2006 JUDGMENT
Date : 22/12/2014
ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. By way of this appeal, the appellant-revenue has challenged the judgment and order dated 28.03.2006 passed by the Income-tax Appellate Tribunal, Ahmedabad Bench in ITA No. 26/Ahd/2003 for the assessment year 1999-00. 2. While admitting this appeal on 09.07.2007, this Court has framed the following substantial question of law: Whether the Appellate Tribunal is right in law and on facts in deleting the addition made to the chargeable interest u/s 2(7) of the Interest Tax Act, by the Assessing Officer in respect of lease rental income? 3. In our view, the amount involved in the present case is a small one and the revenue effect is less than Rs. 1 lakh, and therefore, as per CDBT Instruction No. 1979 dated 27th March, 2000 and 02 of 2005, the revenue ought not to have come in appeal where the total revenue effect is less than Rs. 1 lakh, and therefore, this appeal is not entertained. The questions are answered in favour of the assessee and against the revenue. This appeal is dismissed on the ground of smallness of amount. Liberty to revive in case of difficulty. (K.S.JHAVERI, J.) Page 2 of 3
O/TAXAP/1443/2006 JUDGMENT (K.J.THAKER, J) divya Page 3 of 3
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