COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION-2 vs. L.S. CABLE & SYSTEMS LTD.

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ITA/781/2018HC DelhiDLHC01159237201801 October 2018Bench: HON'BLE MR. JUSTICE SANJIV KHANNA,HON'BLE MR. JUSTICE CHANDER SHEKHAR2 pages
AI SummaryDismissed

What did the High Court hold?

The Delhi High Court held that the issues raised in the present appeal were covered against the Revenue by its earlier decisions in ITA No.703/2009 and ITA No.706/2011. The Court noted that leave to appeal against these prior judgments had been granted by the Supreme Court. Since the assessee was not willing to make a statement under Section 158A and 158AA of the Income Tax Act, 1961, and the Court could not compel them to do so, the Revenue's opportunity to rely on relevant provisions at the appropriate stage was noted. The Court concluded that the appeal did not raise a substantial question of law. Therefore, the appeal was dismissed. No issue was expressly left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax - International Taxation-2 (Revenue) against L.S. Cable & Systems Ltd. (assessee). The assessment year(s) are not explicitly stated. The appeal challenges an order or action that is not detailed, but it concerns issues previously decided by the Delhi High Court in favour of the assessee in ITA No.703/2009 (Director of Income Tax, New Delhi vs. LG Cable Ltd.) and ITA No.706/2011 (Director of Income Tax vs. L.S. Cables Ltd.). Leave to appeal against these prior judgments had been granted by the Supreme Court. On the last hearing, parties were asked if they were ready to make a statement under Section 158A and 158AA of the Income Tax Act, 1961. The assessee's counsel stated they were not willing to make such a statement due to concerns about tax refunds.

What were the issues?

1. Whether the present appeal raises a substantial question of law, considering prior decisions of this Court in ITA No.703/2009 and ITA No.706/2011, which were decided against the Revenue. (Question of law) Assessee's contentions: The assessee, through its counsel, stated it was not willing to make a statement under Section 158A and 158AA of the Income Tax Act, 1961. The reason provided was that the Revenue might perceive this as a ground to not refund taxes paid, and the assessee raised a grievance that refunds had not been paid for the current and prior years. Revenue's contentions: The judgment does not record any specific contentions made by the Revenue regarding the issues. The Revenue's action of filing the appeal implies disagreement with the prior High Court decisions.

Which sections of the Income-tax Act were involved?

Section 158A,Section 158AA

AI-generated summary — verify with the full judgment below

$~3 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 781/2018 COMMISSIONER OF INCOME TAX -INTERNATIONAL TAXATION-2

..... Appellant

Through : Mr.P.Bhatia with Ms.Vibhooti Malhotra

and Mr.Puneet Rai, Advocates.

versus

L.S. CABLE & SYSTEMS LTD.

..... Respondent

Through : Mr.Tarun Gulati with Ms.Ishita Forsaiya,

Advocates.

CORAM: HON'BLE MR. JUSTICE SANJIV KHANNA HON'BLE MR. JUSTICE CHANDER SHEKHAR

O R D E R %

01.10.2018

The issues raised in the present appeal are covered against the Revenue by the decision of this Court in ITA No.703/2009, Director of Income Tax, New Delhi vs.LG Cable Ltd. decided on 24.12.2010 and ITA No.706/2011, Director of Income Tax vs. L.S.Cables Ltd. and connected matters decided on 30.09.2011.

It is stated by the learned counsel for the parties that the leave to appeal against the said judgments have been granted by the Supreme Court of India. On the last date of hearing, we had called the parties to obtain instructions whether they are ready to give a statement in terms of Section 158A and 158AA of the Income Tax Act, 1961.

Learned counsel for the L.S. Cable & System Ltd. (respondent- assessee for short) states that as per instructions they are not willing

and ready to make the said statement as the Revenue would perceive it as a ground to not refund taxes paid. He has raised grievance that refunds have not been paid for this year and earlier years.

In view of the reluctance expressed by the learned counsel for the respondent-assessee, we cannot compel and force them to make any statement. Revenue could have relied upon the relevant provisions at the appropriate stage.

Recording the aforesaid, the appeal is dismissed as it does not raise substantial question of law. There would be no order as to costs.

SANJIV KHANNA, J.

CHANDER SHEKHAR, J.

OCTOBER 01, 2018/sa

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