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

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ITA/247/2012HC Punjab & HaryanaPHHC01099324201224 July 2013Bench: MR. JUSTICE RAJIVE BHALLA,MR. JUSTICE DR. BHARAT BHUSHAN PARSOON2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal filed by the Revenue. The Court noted that the question of law raised in the appeal had already been decided 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 that decision, the Court had answered the question of law against the Revenue. Therefore, in view of the concession made by the counsel for the Revenue that the issue stands decided against them, the present appeal did not require further consideration. The question of law was answered in terms of the order passed in ITA No.33 of 2011, and the appeal was dismissed. No specific finding on the merits of the present case was recorded, as the appeal was disposed of based on a prior precedent.

What were the facts?

The Revenue, Commissioner of Income Tax-I, Ludhiana, filed an appeal before the High Court against an order dated November 25, 2011, passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench 'B'. The ITAT had upheld the decision of the Commissioner of Income Tax (Appeals) [CIT(A)] directing the Assessing Officer (AO) not to charge interest under Section 234D. The assessee is M/s Vardhman Polytex Ltd., Ludhiana. The dispute pertains to the charging of interest under Section 234D on decisions taken by the AO with effect from June 1, 2003, irrespective of the assessment year.

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 June 1, 2003, irrespective of the Assessment Year? Assessee's contentions: Not recorded. Revenue's contentions: The revenue argued that interest under Section 234D is chargeable on all decisions of the Assessing Officer taken from June 1, 2003, onwards, regardless of the assessment year. The ITAT erred in upholding the CIT(A)'s direction to not charge this interest.

Which sections of the Income-tax Act were involved?

Section 234D

AI-generated summary — verify with the full judgment below

ITA No.247 of 2012 (O&M) -: 1 :- IN THE HIGH COURT FOR THE STATES OF PUNJAB AND HARYANA AT CHANDIGARH ITA No.247 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.247 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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