COMMISSIONER OF INCOME TAX vs. BHAGWANT SINGH & ORS

ITA - 472 / 2008HC Delhi15 May 20081 pages

For Petitioner: PREM LATA BANSAL

AI SummaryDismissed

What did the High Court hold?

The High Court held that it was not possible to upset the concurrent findings of the Commissioner of Income Tax (Appeals) and the Income Tax Appellate Tribunal. These findings were that the Assessee commenced its business of vending liquor only from April 1, 1997, even though the contributions for obtaining the license and making the security deposit were made in March 1997. The Court concluded that no substantial question of law arose from this matter. Therefore, the appeal filed by the Revenue was dismissed. The operative direction was the dismissal of the appeal.

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 'A', in ITA Nos. 1187 to 1189/Del/2003, pertaining to Assessment Year 1998-99. The Commissioner of Income Tax (Appeals) and the ITAT had concurrently found that the Assessee commenced its liquor vending business on April 1, 1997. Although contributions for obtaining a license and making a security deposit were made in March 1997, the business operations only began from April 1, 1997. The High Court noted that it was not possible to upset these concurrent findings regarding the taxation of capital in the hands of the Association of Persons, not the Assessee.

What were the issues?

1. Whether the High Court can upset the concurrent findings of the CIT(A) and the ITAT that the Assessee commenced its business of vending liquor w.e.f. April 1, 1997, despite contributions for license and security deposit being made in March 1997? Assessee's Contention: The judgment does not record any specific contentions made by the Assessee. The High Court's decision implies that the Assessee would have supported the concurrent findings of the lower authorities. Revenue's Contention: The Revenue is aggrieved by the order of the ITAT, which upheld the concurrent findings of the CIT(A) and the ITAT. The Revenue likely argued that the business should be considered as commenced earlier, or that the capital should be taxed in the hands of the Assessee. The judgment does not explicitly detail the Revenue's arguments but indicates their disagreement with the concurrent findings.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF DELHI AT NEW DELHI . 15.05.2008 . . Present: Ms. Prem Lata Bansal, Adv. for the Appellant. . . . . + ITA No. 472/2008 . The Revenue is aggrieved by an order dated 6th July, 2007 passed by the Income Tax Appellate Tribunal, Delhi Bench ?A? (the Tribunal) in ITA No.1187 to 1189 /Del/2003 relevant for the Assessment Year 1998-99. The Commissioner of Income Tax(Appeals) as well as the Tribunal have come to a concurrent finding that the Assessee commenced its business of vending liquor only w.e.f. 1st April, 1997. The contribution for obtaining the license and for making the security deposit may have been made in the month of March 1997 but the fact still remains that the business was carried out only w.e.f. 1st April, 1997. In this view of the matter, it is not possible for us to upset the concurrent findings arrived at by the CIT(A) as well as the Tribunal that the capital was liable to be taxed in the hands of Association of persons and not in the hands of the Assessee. ITA No. 472/2008 page 1 of 2 . . No substantial question of law arises in this regard. Dismissed. . MADAN B. LOKUR, J. . . . MAY 15, 2008 MANMOHAN SINGH, J. J . . . . . . . . . . . . . . . . . . . ITA No. 472/2008 page 2 of 2 . (10)

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