M/S AJMER VIDYUT VITRAN NIGAM LIMITED vs. ASSISTANT COMMISSIONER OF INCOME TAX

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ITA/328/2018HC RajasthanRJHC02105154201825 January 2019Bench: MOHAMMAD RAFIQ,GOVERDHAN BARDHAR5 pages
AI SummaryRemanded

What did the High Court hold?

The High Court held that the previous judgment of a Co-ordinate Bench dated December 21, 2017, in M/s. Ajmer Vidyut Vitran Nigam Limited Vs. Assistant Commissioner of Income Tax, Circle-2, Ajmer (D.B. Income Tax Appeal No. 298/2016 and other connected matters) squarely covered the present appeals. In that prior judgment, the High Court had found that the assessee-company was covered by the Notification issued by the State Government on January 18, 2002. Consequently, the basis of the ITAT's consideration, treating the assessee under the Companies Act, was deemed to be based on wrong presumptions and required reconsideration. The High Court quashed and set aside the order of the Tribunal and remitted the matters back to the Tribunal. The Tribunal was directed to reconsider the matters after taking into consideration the Notification of 2002, allowing parties to raise all contentions and place all relevant documents. The High Court also directed the Tribunal to decide the present and earlier set of appeals within six months from March 7, 2019.

What were the facts?

The appeals before the High Court of Judicature for Rajasthan, Bench at Jaipur, involved M/s Ajmer Vidyut Vitran Nigam Limited (the assessee) and the Assistant Commissioner of Income Tax / Principal Commissioner of Income Tax (the revenue). The appeals concerned various assessment years, though not explicitly stated. The primary action under challenge was the order passed by the Income Tax Appellate Tribunal (ITAT). Several appeals were filed by both the assessee and the revenue. There was a delay in filing some of the assessee's appeals, which were condoned by the High Court. The parties agreed that the dispute was covered by a previous judgment of the High Court dated December 21, 2017, in a similar matter involving the same assessee.

What were the issues?

1. Whether the Income Tax Appellate Tribunal erred in its assessment by considering the assessee under the Companies Act, when a Notification issued by the State Government on January 18, 2002, might exempt or alter its status? (Question of law and fact, turning on the interpretation of the Notification and its applicability to the assessee). Assessee's Contention: The assessee argued that the ITAT's order was based on wrong presumptions as it did not consider the Notification dated January 18, 2002, issued by the State Government, which potentially covers the assessee. The assessee also contended that the basis of the Tribunal's consideration, treating it as under the Companies Act, needed reconsideration. Revenue's Contention: The revenue did not present specific arguments in the judgment, but their involvement as appellants in some appeals suggests disagreement with the ITAT's prior findings or the assessee's position. The judgment notes that learned counsel for the parties agreed the dispute was covered by a previous High Court judgment.

Which sections of the Income-tax Act were involved?

Section 5

AI-generated summary — verify with the full judgment below

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR (1) D.B. Income Tax Appeal No. 326/2018 M/s Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan Panchsheel Nagar Makadwali Road Ajmer 305004 ----Appellant Versus Assistant Commissioner Of Income Tax Circle-2, Central Revenue Building Ajmer ----Respondent Connected With (2) D.B. Income Tax Appeal No. 202/2018 Principal Commissioner Of Income Tax, Ajmer ----Appellant Versus M/s Ajmer Vidyut Vitran Nigam Ltd, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer ----Respondent (3) D.B. Income Tax Appeal No. 203/2018 Principal Commissioner Of Income Tax, Ajmer Rajasthan ----Appellant Versus M/s Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road Ajmer ----Respondent (4) D.B. Income Tax Appeal No. 205/2018 Principal Commissioner Of Income Tax, Ajmer ----Appellant Versus M/s Ajmer Vidyut Vitaran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer ----Respondent (5) D.B. Income Tax Appeal No. 206/2018 Principal Commissioner Of Income Tax, Ajmer ----Appellant

(2 of 5) [ITA-326/2018] Versus M/s Ajmer Vidhut Vitran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makarwali Road, Ajmer ----Respondent (6) D.B. Income Tax Appeal No. 323/2018 M/s Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan Panchsheel Nagar Makadwali Road Ajmer 305004 ----Appellant Versus Assistant Commissioner Of Income Tax Circle-2, Central Revenue Building Ajmer ----Respondent (7) D.B. Income Tax Appeal No. 325/2018 M/s Ajmer Vidyut Vitran Nigam Limited, Vidyt Bhawan Panchsheel Nagar Makadwali Road Ajmer 305004 ----Appellant Versus Assistant Commissioner Of Income Tax Circle-2, Central Revenue Building Ajmer ----Respondent (8) D.B. Income Tax Appeal No. 327/2018 M/s Ajmer Vidyut Vitran Nigam Limited, Vidyt Bhawan Panchsheel Nagar Makadwali Road Ajmer 305004 ----Appellant Versus Assistant Commissioner Of Income Tax Circle-2, Central Revenue Building Ajmer ----Respondent (9) D. B. Income Tax Appeal No. 328/2018 M/s Ajmer Vidyut Vitran Nigam Limited, Vidyut Bhawan, Panchsheel Nagar, Makadwali Road, Ajmer 305004 ----Appellant Versus Assistant Commissioner Of Income Tax, Circle-2, Central Revenue Building, Ajmer ----Respondent

(3 of 5) [ITA-326/2018] For Appellant(s) : Mr. Prateek Kedawat on behalf of Mr. R.B. Mathur, for Revenue. For Respondent(s) : Mr. Aditya Bohra on behalf of Mr. Gunjan Pathak for Ajmer Vidyut Vitran Nigam Limited. HON'BLE MR. JUSTICE MOHAMMAD RAFIQ HON'BLE MR. JUSTICE GOVERDHAN BARDHAR Judgment 25/01/2019 There is delay in filing of Appeal No. 326/2018, 323/2018, 325/2018, 327/2018 and 328/2018. Application under Section 5 of the Limitation Act has been filed in each of the aforesaid appeals seeking condonation of delay in filing of the respective appeal. For the reasons mentioned in the applications under Section 5 of the Limitation Act, the same are allowed and delay in filing of the aforesaid appeals is condoned. Learned counsel for the parties are at idom that the dispute raised in the present appeals is squarely covered by judgment dated 21.12.2017 passed by Co-ordinate Bench of this Court in M/s. Ajmer Vidyut Vitran Nigam Limited Vs. Assistant Commissioner of Income Tax, Circle-2, Ajmer (D.B. Income Tax Appeal No. 298/2016 and other connected matters) wherein the matters were remanded back to the Income Tax Appellate Tribunal, Jaipur Bench (for short ‘the Tribunal’) in the following terms: “5. We have heard both the parties earlier but in view of the Notification which has been issued on 18.1.2002, the present appellant-company is covered by the said notification issued by the State Government.

(4 of 5) [ITA-326/2018] 6. In that view of the matter, the very basis of the consideration by the tribunal considering it to be under the Companies Act is required to be reconsidered. In that view of the matter, the order of the tribunal is required to be quashed and set aside as it is based on wrong presumptions. 7. Hence, we remit back the matters to the tribunal. 8. It will be open for the parties to raise all contentions before the tribunal in all the appeals. The tribunal will reconsider the matters after taking into consideration notification of 2002. The counsel for the assessee will put all the documents before the tribunal by the First week of January, 2018. 9. Both the parties will appear before the tribunal on or before 22.1.2018 and tribunal will hear the matters afresh including all the issues which are admitted by the court. 10. The appeals stand allowed as aforesaid.” Without therefore going into the merits of these matters, present set of appeals are also disposed of setting aside the order passed by the Tribunal and remanding the matter back to the Tribunal with direction to reconsider the same in the light of Notification dated 18.01.2002. However, the parties would be at liberty to place all the documents before the Tribunal which they seek to rely in support of their case. The parties are directed to appear before the Tribunal on 07.03.2019. It is informed that even though earlier set of appeals were remanded back to the Tribunal vide judgment dated 21.12.2017 with direction to reconsider the same, despite lapse of more than one year, the matters have not yet been decided. We therefore direct that the Tribunal shall decide the present set of appeals as also the earlier set of appeals positively within six

(5 of 5) [ITA-326/2018] months from the next dated i.e. 07.03.2019 now fixed by this Court in accordance with the law. With the aforesaid directions, appeal are disposed of. All the pending applications are also disposed of. Office is directed to place a copy of this order on record of each connected appeal. (GOVERDHAN BARDHAR),J (MOHAMMAD RAFIQ),J Manoj/29-37

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