PRINCIPAL COMMISSIONER OF INCOME TAX 1 vs. ASTRAL POLY TECHNIK LTD.

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TAXAP/971/2018HC GujaratGJHC24044339201830 July 2018Bench: HONOURABLE MR. JUSTICE M.R. SHAH,HONOURABLE MR. JUSTICE A.Y. KOGJE2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the Revenue's appeal. The Court noted that the issue involved in the present appeal was identical to that decided in Tax Appeal No. 481/2017, where the Division Bench had dismissed the Revenue's appeal. The ITAT had relied on its earlier order for the same assessee for Assessment Year 2008-2009, which was confirmed by the Division Bench. Therefore, the issue was concluded against the Revenue. No substantial question of law arose for consideration. The operative direction was to dismiss the appeal.

What were the facts?

The Revenue is aggrieved by an order of the Income Tax Appellate Tribunal (ITAT) for Assessment Year 2010-2011 concerning Astral Poly Technik Ltd. The ITAT had deleted an addition made by the Assessing Officer (AO) regarding a deduction under Section 80IC. The Revenue's appeal to the High Court challenges the ITAT's decision. The High Court notes that a Division Bench had previously dismissed the Revenue's appeal on the very same issue and assessee for earlier assessment years. The ITAT's order in the present case relied on its own prior order for the assessee concerning Assessment Year 2008-2009, which was subsequently confirmed by the Division Bench of the High Court.

What were the issues?

1. Whether the Appellate Tribunal was right in law and facts in deleting the addition in respect of deduction u/s 80IC without appreciating that the provisions of section 80IC(7) r.w.s. 80IA(8) of the Act were rightly invoked by the AO while estimating the profits derived from brand value and marketing activity? (Question of law and fact, concerning Section 80IC and Section 80IA). Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The AO rightly invoked Section 80IC(7) read with Section 80IA(8) of the Income Tax Act, 1961, to estimate profits derived from brand value and marketing activity, and the ITAT erred in deleting the consequent addition.

Which sections of the Income-tax Act were involved?

Section 80IC,Section 80IA

AI-generated summary — verify with the full judgment below

C/TAXAP/971/2018 ORDER IN THE HIGH COURT OF GUJARAT AT AHMEDABAD R/TAX APPEAL NO. 971 of 2018 =========================================================== PRINCIPAL COMMISSIONER OF INCOME TAX 1 Versus ASTRAL POLY TECHNIK LTD. ================================================================ 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 : 30/07/2018 ORAL ORDER (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1. Feeling aggrieved and dissatisfied by the impugned judgment and order passed by the learned Income Tax Appellate Tribunal (ITAT), Ahmedabad Bench “A” passed in ITA No.2666/Ahd./2014 for the Assessment Year 2010- 2011, the Revenue has preferred the present Appeal with the proposed question of law :- “Whether the Appellate Tribunal was right in law and facts in deleting the addition in respect of deduction u/s 80IC without appreciating the facts that the provisions of section 80IC(7) r.w.s. 80IA(8) of the Act were rightly invoked by the AO while estimating the profits derived from brand value and marketing activity?” 2. Heard learned Advocate Mrs. Mauna M. Bhatt appearing on behalf of the appellant – Revenue. Page 1 of 2

C/TAXAP/971/2018 ORDER 3. At the outset, it is required to be noted that on the very issue and the very Assessee, with respect to the earlier assessment year/s, the Division Bench of this Court in Tax Appeal No.481/2017 had dismissed the Appeal preferred by the Revenue. The learned Tribunal has relied upon its earlier order in the case of the very assessee but with respect to the earlier Assessment Year : 2008-2009, which has now been confirmed by the Division Bench of this Court. 4. Under the circumstances, the issue involved in the present Appeal is now concluded against the Revenue in light of the decision rendered in Tax Appeal No.481/2017. Therefore, no substantial question of law arises in the present Appeal. Therefore, the present Appeal deserves to be dismissed and is accordingly dismissed. Sd/- (M.R. SHAH, J) Sd/- (A.Y. KOGJE, J) CAROLINE Page 2 of 2

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