The Commissioner Of Income Tax vs. M/S Global Reality

ITA/39/2012HC Madhya Pradesh21 August 2015Bench: HON'BLE THE CHIEF JUSTICE2 pages

For Petitioner: Sanjay LalFor Respondent: Abhishek Oswal,L.L.Sharma,Manish Sharma, Ashish

AI SummaryAllowed

What did the High Court hold?

The High Court allowed the appeals filed by the Department. It set aside the impugned judgment of the ITAT concerning the deduction claimed by the assessee under Section 80IB(10)(a) of the Income Tax Act. Consequently, the decision of the Assessing Officer to disallow the said deduction was upheld. The Court's reasoning was based on its decision in a connected matter (I.T.A. No.40/2012 and connected cases) decided by a separate judgment on the same day, where the substantial question of law was answered in favour of the Department. The ratio decidendi is that if a substantial question of law regarding Section 80IB(10)(a) deduction has been decided in favour of the Revenue in a connected case, similar appeals should follow the same outcome. The operative direction was to set aside the ITAT's order and uphold the Assessing Officer's disallowance. No issue was expressly left undecided.

What were the facts?

The appeals were filed by the Commissioner of Income Tax (the Revenue) against M/s Global Estate (the assessee) concerning Assessment Years 2002-03 to 2006-07. These appeals arose from a common order dated 29.09.2011 passed by the Income Tax Appellate Tribunal (ITAT), Indore Bench, in relation to another assessee, M/s Global Reality. The Revenue's sole contention pressed in these appeals pertained to the deduction claimed by the assessee under Section 80IB(10)(a) of the Income Tax Act. The High Court noted that a separate judgment had been delivered on the same day concerning I.T.A. No.40/2012 and connected cases, where the substantial question of law was answered in favour of the Department.

What were the issues?

1. Whether the assessee is entitled to deduction under Section 80IB(10)(a) of the Income Tax Act, 1961, for the Assessment Years 2002-03 to 2006-07. The Department argued that the substantial question of law concerning the deduction under Section 80IB(10)(a) had been answered in its favour in a connected matter (I.T.A. No.40/2012 and connected cases) decided by a separate judgment on the same day. Therefore, for the same reasons stated in that judgment, these appeals filed by the Department should also succeed. The assessee's arguments are not recorded in the judgment.

Which sections of the Income-tax Act were involved?

Section 80IB(10)(a)

AI-generated summary — verify with the full judgment below

1 HIGH COURT OF MADHYA PRADESH : JABALPUR I.T.A. No.34/2012, I.T.A. No.39/2012 I.T.A. No.41/2012, I.T.A. No.42/2012 & I.T.A. No.43/2012 Commissioner of Income Tax

…..Appellant Versus M/s Global Estate.

….Respondents ============================================= Coram: Hon’ble Shri Justice A. M. Khanwilkar, Chief Justice Hon’ble Shri Justice K.K.Trivedi, J. ============================================= Shri Sanjay Lal and Shri Rajesh Pandey, Advocates for the appellant/Commissioner of Income Tax. Shri G.N. Purohit, learned Senior Counsel with Shri L.L. Sharma and Shri Abhishek Oswal, Advocate for the respondent. ============================================= Reserved On : 21.07.2015 Date of Decision : 21.08.2015 J U D G M E N T { 21st August, 2015 } Per: A.M. Khanwilkar, Chief Justice: These appeals are filed by the Department qua single assessee, regarding five separate Assessment Years i.e. 2002-03 to 2006-07, bearing I.T.A. Nos.41, 43, 42, 39 and 34 of 2012 2 respectively. Moreover, these appeals emanate from a common order passed by the Income Tax Appellate Tribunal, Indore Bench, at Indore dated 29.09.2011 in respect of another assessee (M/s Global Reality). Since common substantial question of law arises for consideration, all appeals were heard analogously and, therefore, are being disposed of by this common judgment. Even in these appeals only issue pressed by the Department is in relation to the deduction under Section 80IB(10)(a) of the Income Tax Act. 2. In the leading I.T.A. No.40/2012 and connected cases decided today by a separate Judgment, the substantial question of law has been answered in favour of the Department. For the reasons stated in the said judgment, even these appeals filed by the Department must succeed on the same terms. 3. Accordingly, these appeals are allowed by setting aside the impugned judgment of the Tribunal with regard to the deduction claimed by the assessee under Section 80IB(10)(a) of the Income Tax Act and instead the decision of the Assessing Officer to disallow the said deduction is upheld. No order as to costs. (A.M. Khanwilkar) (K.K.Trivedi) Chief Justice Judge psm

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