M/S SARAF SEASONING UDYOG vs. THE COMMISSIONER OF INCOME TAX AND ANR

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ITA/321/2017HC RajasthanRJHC02082565201709 July 2024Bench: AVNEESH JHINGAN,ASHUTOSH KUMAR2 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal held that the common question involved in the present income tax appeals was whether the appellant was entitled to deduction under Section 80-IB of the Income Tax Act, 1961, on account of the Duty Entitlement Pass Book Scheme as well as the Duty Drawback Scheme. The Tribunal noted that the revenue relied on the Supreme Court's judgment in M/s. Saraf Exports Vs. Commissioner of Income Tax, Jaipur-III, which had decided the issue. The appellant's counsel was unable to distinguish the present appeals from the Supreme Court's decision. Consequently, the Tribunal dismissed the appeals in terms of the Supreme Court's judgment dated 10.04.2023 in the case of M/s. Saraf Exports. The ratio decidendi is that if a similar issue has been decided by the Supreme Court, the High Court would follow that precedent. No issue was expressly left undecided.

What were the facts?

The appeals were filed by M/s Saraf Seasoning Udyog (the assessee) against the Commissioner of Income Tax and the Deputy Commissioner of Income Tax (the revenue). The assessment years are not explicitly stated. The appeals challenge the denial of deduction under Section 80-IB of the Income Tax Act, 1961, specifically concerning amounts received under the Duty Entitlement Pass Book (DEPB) Scheme and the Duty Drawback Scheme. The procedural history indicates that these appeals were heard together. The revenue relied on a Supreme Court judgment in a similar case to support their contention.

What were the issues?

1. Whether the appellant was entitled to deduction under Section 80-IB of the Income Tax Act, 1961, on account of the Duty Entitlement Pass Book (DEPB) Scheme. 2. Whether the appellant was entitled to deduction under Section 80-IB of the Income Tax Act, 1961, on account of the Duty Drawback Scheme. Assessee's contention: The appellant's counsel was unable to distinguish the present case from the Supreme Court's decision in M/s. Saraf Exports Vs. Commissioner of Income Tax, Jaipur-III. Revenue's contention: The revenue relied upon the judgment of the Supreme Court in M/s. Saraf Exports Vs. Commissioner of Income Tax, Jaipur-III, Civil Appeal No.4822/2022 @ SLP (C) No.17539/2016 dated 10.04.2023, submitting that the issue involved in the present appeals had already been decided by the Supreme Court.

Which sections of the Income-tax Act were involved?

Section 80-IB

AI-generated summary — verify with the full judgment below

[2024:RJ-JP:28681-DB] HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 320/2017 M/s Saraf Seasoning Udyog, Riico Industrial Area, Sardarshar, Churu. Through Its Partner Brij Mohan Saraf ----Appellant Versus 1. The Commissioner Of Income Tax, N.C.R.B. Building Statue Circle, Jaipur. 2. Deputy Commissioner Of Income Tax Circle, Jhunjhunu ----Respondents Connected With D.B. Income Tax Appeal No. 321/2017 M/s Saraf Seasoning Udyog RIICO Industrial Area, Sardarshar, Churu, Through Its Partner Brij Mohan Saraf ----Appellant Versus 1. The Commissioner Of Income Tax, N.C.R.B. Building Statue Circle, Jaipur 2. Deputy Commissioner Of Income Tax Circle, Jhunjhunu ----Respondents D.B. Income Tax Appeal No. 322/2017 M/s Saraf Seasoning Udyog, RIICO Industrial Area, Sardarshar, Churu. Through Its Partner Brij Mohan Saraf ----Appellant Versus 1. The Commissioner Of Income Tax, N.C.R.B. Building Statue Circle, Jaipur. 2. Deputy Commissioner Of Income Tax Circle, Jhunjhunu ----Respondents D.B. Income Tax Appeal No. 323/2017 M/s Saraf Seasoning Udyog RIICO Industrial Area, Sardarshar, Churu, Through Its Partner Brij Mohan Saraf ----Appellant Versus 1. The Commissioner Of Income Tax, N.C.R.B. Building Statue

[2024:RJ-JP:28681-DB] (2 of 2) [ITA-320/2017] Circle, Jaipur 2. Deputy Commissioner Of Income Tax Circle, Jhunjhunu ----Respondents For Appellant(s) : Mr. P.K. Kasliwal, Adv. For Respondent(s) : Mr. Anuroop Singhi, Adv. with Mr. N.S. Bhati, Adv. & Mr. Aditya Khandelwal, Adv. HON'BLE MR. JUSTICE AVNEESH JHINGAN HON'BLE MR. JUSTICE ASHUTOSH KUMAR Judgment / Order 09/07/2024 1. The common question involved in the present income tax appeals is as to whether the appellant was entitled to deduction under Section 80-IB of the Income Tax Act, 1961 on the account of Duty Entitlement Pass Book Scheme (‘DEPB’) as well as Duty Drawback Scheme. 2. Learned counsel for the respondents relies upon the judgment of the Supreme Court in the case of M/s. Saraf Exports Vs. Commissioner of Income Tax, Jaipur-III in Civil Appeal No.4822/2022 @ SLP (C) No.17539/2016 dated 10.04.2023 to submit that the issue involved in the present appeals has already been decided by the Supreme Court in the said case. 3. Learned counsel for the appellant is not able to distinguish in view of decision of the Supreme Court in case of M/s. Saraf Exports (supra). 4. The appeals are dismissed in terms of the judgment dated 10.04.2023 passed in the case of M/s. Saraf Exports (supra). (ASHUTOSH KUMAR),J (AVNEESH JHINGAN),J HS/Mohita-85-88

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