COMMISSIONER OF INCOME TAX vs. G.D.STEELS & GASES P.LTD.

ITA - 343 / 2008HC Delhi28 April 20081 pages

For Petitioner: PREM LATA BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that the question of whether the amount paid by the assessee to the bank for settlement of loan dues should be adjusted against the principal or interest hardly raises any substantial question of law. The Court did not delve into the specifics of the ITAT's reasoning or the arguments presented by the assessee. The ratio decidendi appears to be that such a dispute, in this context, does not warrant interference by the High Court on the grounds of a substantial question of law. The operative direction was to dismiss the appeal filed by the Revenue. No issues were expressly left undecided.

What were the facts?

The Revenue is aggrieved by an order dated July 6, 2007, passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench 'D', for Assessment Year 2002-2003. The assessee, G.D. Steels and Gases Pvt. Ltd., had arrived at a settlement with Indian Bank regarding a loan. The assessee paid a lump sum of Rs. 1,00,75,000/- to the bank for the full and final settlement of its dues. The Revenue's contention concerns how this payment should be adjusted, specifically whether it should be against the principal amount of the loan or the accrued interest.

What were the issues?

1. Whether the amount paid by the assessee to the bank for settlement of loan dues should be adjusted against the principal or interest. (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: The Revenue argued that the question of whether the payment is to be adjusted against the principal or interest raises a substantial question of law. The Revenue is aggrieved by the ITAT's order which presumably allowed the assessee's claim regarding the adjustment of the payment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . . ITA 343/2008 . . COMMISSIONER OF INCOME TAX ..... Appellant Through : Ms. Prem Lata Bansal, Adv. . versus . . G.D.STEELS and GASES P.LTD. ..... Respondent Through : None . . CORAM: HON'BLE MR. JUSTICE MADAN B. LOKUR HON'BLE MR. JUSTICE MANMOHAN SINGH . O R D E R 28.04.2008 . The Revenue is aggrieved by an order dated 6th July, 2007 passed by Income Tax Appellate Tribunal, Delhi Bench ?D? in ITA No.3197/Del/2006 relevant for the Assessment Year 2002-2003. . . A settlement was arrived at between the Assessee and the Indian Bank in respect of a loan taken by the Assessee. In terms of the agreement, the Assessee paid a lump sum amount of Rs.1,00,75,000/- to the Bank towards full and final settlement of its dues. The question raised by the Revenue is whether the amount paid is to be adjusted against the principal or the interest. This hardly raises any substantial question of law. ITA 343/2008 page 1 of 2 Dismissed. . . . MADAN B. LOKUR, J . . . MANMOHAN SINGH, J APRIL 28, 2008 sa . . . . . . . . . . . . . . . . . . . . . . . . . . . ITA 343/2008 page 2 of 2 (63)

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