COMMISSIONER OF INCOME TAX-I LUDHIANA vs. M/S VARDHMAN POLYTEX

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ITA/161/2012HC Punjab & HaryanaPHHC01099229201224 July 2013Bench: MR. JUSTICE DR. BHARAT BHUSHAN PARSOON,MR. JUSTICE RAJIVE BHALLA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the question of law framed in the appeal had already been answered by this Court in a previous case, ITA No.33 of 2011, titled The Commissioner of Income Tax v. M/s Anand Concast Ltd., decided on January 27, 2011. In light of the concession made by the counsel for the revenue that the issue has been decided against the revenue in the aforementioned case, the appeal did not warrant further consideration. The Court answered the question of law in terms of its order in the Anand Concast Ltd. case. Consequently, the appeal filed by the revenue was dismissed. No specific amount in dispute was mentioned. No issue was left undecided.

What were the facts?

The revenue, Commissioner of Income Tax-I, Ludhiana, has appealed against an order dated November 25, 2011, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'B'. The ITAT's order upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)]. The core of the dispute concerns the charging of interest under Section 234D of the Income Tax Act. The revenue's appeal was admitted on a specific question of law. The assessment year(s) are not explicitly stated but the charging of interest under Section 234D is stated to be applicable for decisions taken w.e.f. 01.06.2003.

What were the issues?

1. Whether, on the facts and circumstances of the case, the Hon'ble ITAT was justified in accepting the decision of the CIT(A) who directed the Assessing Officer not to charge interest under Section 234D, despite the fact that it is chargeable in all decisions of the Assessing Officer taken with effect from 01.06.2003, irrespective of the Assessment Year? Assessee's Contention: The judgment does not record any specific contentions made by the assessee, M/s Vardhman Polytex Ltd., Ludhiana. Revenue's Contention: The revenue contended that interest under Section 234D is chargeable on all decisions of the Assessing Officer taken from June 1, 2003, onwards, irrespective of the assessment year, and therefore, the ITAT was not justified in accepting the CIT(A)'s direction to not charge such interest.

Which sections of the Income-tax Act were involved?

Section 234D

AI-generated summary — verify with the full judgment below

ITA No.161 of 2012 (O&M) -: 1 :- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.161 of 2012 (O&M) Date of decision: July 24, 2013. Commissioner of Income Tax-I, Ludhiana ... Appellant v. M/s Vardhman Polytex Ltd., Ludhiana ... Respondent CORAM: HON'BLE MR. JUSTICE RAJIVE BHALLA HON'BLE MR. JUSTICE DR. BHARAT BHUSHAN PARSOON Present: Shri Rajesh Katoch, Advocate, for the appellant. Shri Alok Mittal, Advocate for the respondent. Rajive Bhalla

, J. (Oral): The revenue has laid challenge to order dated 25.11.2011 passed by Income Tax Appellate Tribunal, Chandigarh Bench 'B', Chandigarh. Notice in the appeal was issued on the following question of law:- “Whether on facts and circumstances of the case, the Hon'ble ITAT was justified in accepting the decision of CIT (A) who directed the Assessing Officer not to charge interest u/s 234D despite of the fact that it is chargeable in all decisions of Assessing Officer taken w.e.f. 01.06.2003 irrespective of the Assessment Year.” Kadyan Vinod Kumar 2013.07.26 10:01 I attest to the accuracy and integrity of this document Chandigarh

ITA No.161 of 2012 (O&M) -: 2 :- Counsel for the appellant fairly concedes that the said question has already been answered by this Court, in ITA No.33 of 2011, The Commissioner of Income Tax. v. M/s Anand Concast Ltd., decided on 27.1.2011. In view of the statement made by counsel for the revenue, as the question of law has already been answered against the revenue, the appeal does not call for further consideration. The question of law, so framed, is answered in terms of order dated 27.1.2011, passed in ITA No.33 of 2011, The Commissioner of Income Tax. v. M/s Anand Concast Ltd., and the appeal is dismissed.

[ Rajive Bhalla ]

Judge

[Dr. Bharat Bhushan Parsoon] July 24, 2013. Judge kadyan Kadyan Vinod Kumar 2013.07.26 10:01 I attest to the accuracy and integrity of this document Chandigarh

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