Commissioner Of Income Tax vs. M/S Lila Sons Breweries Ltd.

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ITA/73/2012HC Madhya Pradesh23 April 2015Bench: HON'BLE SHRI JUSTICE RAJENDRA MENON2 pages
For Petitioner: Sanjay Lal
AI SummaryDismissed

What did the High Court hold?

The High Court held that no substantial question of law arises for consideration in the revenue's appeal. This conclusion was reached because the Income Tax Appellate Tribunal had decided the issue concerning the application of Section 194C of the Income Tax Act, 1961, based on a decision of the Bombay High Court. This Bombay High Court decision had, in turn, been approved by the Supreme Court. Therefore, the Tribunal's finding was considered well-founded and not open to further substantial legal challenge. The High Court found no reason to interfere with the Tribunal's order and dismissed the appeal. The operative direction was the dismissal of the appeal.

What were the facts?

This matter concerns an appeal filed by the revenue under Section 260-A of the Income Tax Act, 1961. The appeal challenges a decision of the Income Tax Appellate Tribunal (ITAT). The revenue and the assessee, M/s Lila Sons Breweries Ltd., are the same parties involved in a previously decided identical case, ITA No. 194/2010. The High Court noted that the ITAT had answered the issue based on a Bombay High Court decision, which was subsequently approved by the Supreme Court.

What were the issues?

1. Whether a substantial question of law arises for consideration in the appeal filed by the revenue under Section 260-A of the Income Tax Act, 1961, concerning the application of Section 194C of the Income Tax Act, 1961. Assessee's Contention: The judgment does not record any specific contentions made by the assessee. However, the Tribunal's decision, which the High Court upheld, was based on a Bombay High Court judgment approved by the Supreme Court, implying the assessee likely relied on this precedent. Revenue's Contention: The revenue, as the appellant, argued that a substantial question of law arises. However, the High Court found that the issue had been answered by the Tribunal based on established judicial pronouncements, thus negating the existence of a substantial question of law.

Which sections of the Income-tax Act were involved?

Section 260-A,Section 194C

AI-generated summary — verify with the full judgment below

ITA-73-2012 (COMMISSIONER OF INCOME TAX Vs M/S LILA SONS BREWERIES LTD.) 23-04-2015 Shri Sanjay Lal for the appellant. This is an appeal filed by the revenue under section 260-A of the Income Tax Act, and we find that with regard to the same question involved in these appeals, between the revenue and the same assessee/respondent, identical and similar case being ITA No.194/2010 has been dismissed by a Coordinate Bench of this Court on 31.1.2014. Vide order passed in ITA No.194/2010, the Bench in the aforesaid case has held as under: “ Shri Sanjay Lal, learned counsel for the appellant. Since the issue of application of Section 194 C of the Income Tax Act, 1961 has been answered by the Appellate Tribunal on the basis of the decision of the Bombay High Court which has been approved by the Apex Court, no substantial question arises for consideration. Accordingly, the appeal is dismissed.”

As such, we see no reason to interfere in the matter. In this case also, the issue has been answered by the Appellate Tribunal based on the judgment of the Bombay High Court, which has been approved by the Supreme Court. In view of the above, no substantial question of law arises for consideration. The appeals are accordingly dismissed. (RAJENDRA MENON) JUDGE (MOOL CHAND GARG) JUDGE

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