COMMISSIONER OF INCOME TAX vs. M/S NORTHERN PROVINCE OF CARMELITE

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ITA/24/2014HC Madhya PradeshMPHC01000319201416 January 20151 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal decided the issue in favor of the assessee. The High Court noted that the question of law raised in the present appeal had already been decided against the Revenue by a coordinate bench of the same Court at Indore in the case of Commissioner of Income Tax Vs. Shri Gujrati Samaj (2012). Following this precedent, the High Court saw no reason to further indulge in the matter. Therefore, the appeal filed by the Revenue was disposed of in light of the prior decision. The ratio decidendi is that if a legal issue has been definitively decided by a coordinate bench, subsequent appeals raising the same issue are likely to follow the established precedent. The operative direction was to dispose of the appeal, implying upholding the ITAT's order.

What were the facts?

The Revenue, Commissioner of Income Tax, Bhopal, filed an appeal under Section 260-A of the Income Tax Act against an order passed by the Income Tax Appellate Tribunal (ITAT) on July 29, 2013. The appeal concerns the assessee, M/s Northern Province of Carmelite Sister of Teresa. The core issue is whether the ITAT was justified in upholding the Commissioner of Income Tax (Appeals) [CIT(A)] order directing the Assessing Officer (AO) to allow the set-off of a carry-forward deficit of Rs. 92,15,262/- from Assessment Year (AY) 2003-04 against the current year's income, and to permit the carry-forward of the remaining deficit to subsequent years.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the findings of the learned CIT(A) directing the AO to allow set-off of carry forward deficit of AY 2003-04 of Rs. 92,15,262/- against current year's income and allowing the balance deficit to be carry forward for being applied in subsequent year? Assessee's contentions: Not recorded in the judgment. Revenue's contentions: The Revenue argued that the Tribunal was not justified in law in upholding the CIT(A)'s direction to allow the set-off of the carry-forward deficit from AY 2003-04 against the current year's income and to allow the balance to be carried forward. The Revenue's appeal hinges on the interpretation of provisions related to the set-off and carry-forward of losses.

Which sections of the Income-tax Act were involved?

Section 260-A

AI-generated summary — verify with the full judgment below

I.T.A.No.24/2014 Commissioner of Income Tax Bhopal Vs. M/s Northern Province of Carmelite Sister of Teresa 16/01/2015 Shri Sanjay Lal, learned counsel for the appellant. Shri Abhijeet Shrivastava, learned counsel for the respondent. This appeal by the Revenue under Section 260-A of the Income Tax Act has been filed calling in question the tenability of an order passed by the Income Tax Appellate Tribunal on 29.7.2013. The question of law proposed in this appeal reads as under : “Whether on the facts and in the circumstances of the case, the Tribunal was justified in law in upholding the findings of Id. CIT (A) directing the A.O. to allow set off of carry forward deficit of A.Y.2003-04 of Rs.92,15,262/- against current year's income and allowing the balance deficit to be carry forward for being applied in subsequent year ?” It is common ground that the aforesaid question of law has already been decided against the revenue by a coordinate bench of this Court at Indore in the case of Commissioner of Income Tax Vs. Shri Gujrati Samaj 2012 (17) Taxman.com 164 (Madhya Pradesh). Keeping in view the aforesaid question of law already decided in the case of Shri Gujrati Samaj (supra), we see no reason to make any further indulgence into the matter. With the aforesaid, this appeal stands disposed of. (Rajendra Menon) (Rajendra Mahajan) Judge Judge nd

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