COMMISSIONER OF INCOME TAX vs. INVENSYS INDIA PVT LTD

ITA - 1156 / 2010HC Delhi17 August 20101 pages

For Petitioner: SANJEEV SABHARWAL

AI SummaryDismissed

What did the High Court hold?

The High Court of Delhi held that the controversy in the present appeal was squarely covered by the decision of the Supreme Court in Rotork Controls India P. Ltd. and Ors. vs. CIT, 314 ITR 62 (SC). Consequently, the High Court found no merit in the appeal filed by the revenue. The Tribunal's order, which allowed the assessee's appeal, was therefore upheld. The principle established is that if a revenue appeal is based on an issue already decided by the Supreme Court in favor of the assessee, the revenue's appeal is likely to be dismissed. The High Court dismissed the appeal in limine. No specific issue was left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax (Revenue) against an order dated August 28, 2009, passed by the Income Tax Appellate Tribunal (Tribunal). The Tribunal, in its order in ITA No. 2196/Del./2008, had allowed the appeal of the respondent-assessee, Invensys India Pvt Ltd, for the Assessment Year 2003-2004. The Tribunal's decision was based on its reliance on the Supreme Court's judgment in Rotork Controls India P. Ltd. and Ors. vs. CIT, 314 ITR 62 (SC). The High Court of Delhi was hearing the present appeal against the Tribunal's order.

What were the issues?

1. Whether the Tribunal erred in allowing the appeal of the assessee by placing reliance on the decision in Rotork Controls India P. Ltd. and Ors. vs. CIT, 314 ITR 62 (SC)? (Question of law) Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, the Tribunal's decision, which was upheld by the High Court, was based on the Supreme Court's ruling in Rotork Controls India P. Ltd. and Ors. vs. CIT. Revenue's Contention: The learned counsel for the revenue stated that the controversy in the present appeal is squarely covered by the decision in Rotork Controls India P. Ltd. and Ors. vs. CIT, 314 ITR 62 (SC).

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . ITA 1156/2010 . . COMMISSIONER OF INCOME TAX ..... Appellant Through: Mr. Sanjeev Sabharwal, Advocate. . versus . . INVENSYS INDIA PVT LTD ..... Respondent Through: Mr. Sanat Kapoor and Ms. Garima Batra, Advocates. . CORAM: HON'BLE THE CHIEF JUSTICE HON'BLE MR. JUSTICE MANMOHAN . O R D E R 17.08.2010 The present appeal is directed against the order dated 28th August, 2009 passed by the Income Tax Appellate Tribunal Delhi Bench ?C? (in short ?tribunal?) in ITA No. 2196/Del./2008 pertaining to the Assessment Year 2003-2004 whereby the tribunal after placing reliance on the decision in Rotork Controls India P. Ltd. and Ors. vs. CIT, 314 ITR 62 (SC) has allowed the appeal of the respondent- assessee. . ITA 1156/2010 page 1 of 2. . . We must fairly say that Mr. Sanjeev Sabharwal, learned counsel for the revenue, stated that the controversy is squarely covered by the aforesaid decision. In view of the aforesaid, we do not perceive any merit in the appeal and, accordingly, the same is dismissed in limine. . . CHIEF JUSTICE . . . . MANMOHAN, J AUGUST 17, 2010 Js . . . . . . . . . . . . . . . . . . ITA 1156/2010 page 2 of 2. . . . 7

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