PRINCIPAL COMMISSIONER OF INCOME TAX 7 vs. SATYAM CORPORATION

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TAXAP/690/2018HC GujaratGJHC24035872201810 July 2018Bench: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE A.Y. KOGJE3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the issue involved in the present appeal was no longer res integra, meaning it had already been decided. The Court noted that the ITAT's decision in the present case heavily relied on its earlier decision in Shree Hari Developers, where a similar deduction under Section 80IB(10) was allowed in favour of the assessee. Crucially, the Court observed that the Revenue had appealed the decision in Shree Hari Developers to the High Court itself (Tax Appeal No. 124/2018), and that appeal was dismissed by a Division Bench of the High Court on December 27, 2018. Therefore, the issue was held against the Revenue. The Court concluded that no substantial question of law arose in the present appeal.

What were the facts?

The Revenue has filed an appeal against an order of the Income Tax Appellate Tribunal (ITAT), 'D' Bench, Ahmedabad, dated December 19, 2017, for the Assessment Year 2008-2009. The ITAT had deleted additions of Rs. 83,65,567/- made by the Assessing Officer. The ITAT's decision was based on its prior ruling in the case of Shree Hari Developers, which allowed a similar deduction under Section 80IB(10) of the Income Tax Act. The Revenue further states that this decision in Shree Hari Developers was upheld by the High Court of Gujarat in Tax Appeal No. 124/2018, which dismissed the Revenue's appeal.

What were the issues?

1. Whether the Appellate Tribunal has substantially erred in law in deleting the additions made under Section 80IB(10) of Rs. 83,65,567/- by the Assessing Officer? Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue contends that the Appellate Tribunal erred in law by deleting the additions made under Section 80IB(10). The Revenue relies on the fact that the ITAT's decision in the present case was based on its own prior ruling in Shree Hari Developers. The Revenue further notes that its appeal against the Shree Hari Developers decision was dismissed by the High Court of Gujarat.

Which sections of the Income-tax Act were involved?

Section 80IB(10)

AI-generated summary — verify with the full judgment below

C/TAXAP/690/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 690 of 2018 =========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 7 Versus SATYAM CORPORATION ================================================================ Appearance: MRS MAUNA M BHATT(174) for the PETITIONER(s) No. 1 for the RESPONDENT(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE A.Y. KOGJE

Date : 10/07/2018

ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1. Feeling aggrieved and dissatisfied with the impugned order passed by the learned Income Tax Appellate Tribunal (ITAT), ‘D’ Bench, Ahmedabad dated 19.12.2017 in ITA No.1176/Ahd./2012 for the Assessment Year : 2008-2009, the Revenue has preferred the present Tax Appeal with the following proposed substantial question of law :- “Whether the Appellate Tribunal has substantially erred in law in deleting the additions made u/s. 80IB(10) of Rs.83,65,567/- by the Assessing Officer?” Page 1 of 3

C/TAXAP/690/2018 ORDER 2. Heard learned Counsel Mr. M.R. Bhatt appearing on behalf of the appellant – Revenue. 3. At the outset, it is required to be noted that while passing the impugned order, the learned Tribunal has heavily relied upon its decision of the Tribunal in case of one – Shree Hari Developers. From the impugned order, it appears that in an identical case of Shree Hari Developers, the ITAT held in favour of the assessee and allowed the similar deduction claimed under Section 80IB(10) of the Act. It is reported by learned Counsel appearing on behalf of the Revenue Mr. M.R. Bhatt that as such, the decision in the case of Shree Hari Developers was further carried before this Court by way of Tax Appeal No.124/2018 and vide order dated 27.12.2018, the Division Bench of this Court has dismissed the Appeals preferred by the Revenue. 4. Therefore, the issue involved in the present Appeal is now not res-integra and the same is held against the Revenue. Page 2 of 3

C/TAXAP/690/2018 ORDER 5. In view of the above, no substantial question of law arises in the present Appeal. The Appeal therefore, deserves to be dismissed and is hereby dismissed. Sd/- (M.R. SHAH, J) Sd/- (A.Y. KOGJE, J) CAROLINE Page 3 of 3

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