THE COMMISSIONER OF INCOME TAX -INTERNATIONA TAXATION-2 vs. KSS ENGINEERING LTD.

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ITA/249/2018HC DelhiDLHC01008856201826 February 2018Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that no substantial question of law arises in the appeals filed by the Revenue. The Court noted that the issue concerning the assessee's liability to pay interest under Section 234B of the Income Tax Act, 1961, was squarely covered by the High Court's own prior decision in Directorate of Income Tax v. G.E. Packaged Power Inc. (373 ITR 65 (Del.)). Therefore, as the law on the matter was already settled by a binding precedent, the appeals were dismissed. The operative direction was the dismissal of the appeals. No issue was expressly left undecided.

What were the facts?

These appeals were filed by the Revenue challenging an order of the Income Tax Appellate Tribunal (ITAT). The respondent is KSS Engineering Ltd. The appeals concern the assessment year(s) not explicitly stated in the provided text. The specific order or action under challenge is the ITAT's decision regarding the assessee's liability to pay interest under Section 234B of the Income Tax Act, 1961. The ITAT had followed a previous decision of the Delhi High Court in Directorate of Income Tax v. G.E. Packaged Power Inc. The amount in dispute is not stated. The procedural history involves the Revenue filing appeals against the ITAT's order.

What were the issues?

1. Whether a question of law arises concerning the assessee's liability to pay interest under Section 234B of the Income Tax Act, 1961, given the ITAT's reliance on the Delhi High Court's decision in Directorate of Income Tax v. G.E. Packaged Power Inc. (373 ITR 65 (Del.)). Contentions: Assessee: No argument recorded for the respondent (assessee) as none appeared. Revenue: Argued that the assessee is liable to pay interest under Section 234B of the Act. The Revenue's appeals are based on the contention that the ITAT erred in its decision, which was predicated on the G.E. Packaged Power Inc. case.

Which sections of the Income-tax Act were involved?

Section 234B

AI-generated summary — verify with the full judgment below

$~44 & 45 * IN THE HIGH COURT OF DELHI AT NEW DELHI

+ ITA 249/2018 & CM APPL. 7367/2018

THE COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION-2

..... Appellant

versus

KSS ENGINEERING LTD.

..... Respondent

+ ITA 250/2018

THE PR. COMMISSIONER OF INCOME TAX - INTERNATIONAL TAXATION-2

..... Appellant

versus

KSS ENGINEERING LTD.

..... Respondent

Present: Mr. Ruchir Bhatia, Sr. Standing Counsel for Revenue.

None for respondent.

CORAM: HON'BLE MR. JUSTICE S. RAVINDRA BHAT HON'BLE MR. JUSTICE A. K. CHAWLA

O R D E R %

26.02.2018

The only issue urged by the Revenue in its appeals challenging the order of the ITAT is the assessee’s liability to pay interest under Section 234B of the Income Tax Act, 1961 (for short “the Act”). The ITAT followed the decision of this Court in Directorate of Income Tax v. G.E. Packaged Power Inc. 373 ITR 65 (Del.). The facts of this case clearly show that the question of ITA Nos.249/2018 & 250/2018

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law with respect to Section 234B of the Act is covered by G.E. Package Power Inc. (supra). Therefore, no question of law arises. The appeals are consequently dismissed.

S. RAVINDRA BHAT, J

A. K. CHAWLA, J FEBRUARY 26, 2018 kks

ITA Nos.249/2018 & 250/2018

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