THE COMM. OF INCOME TAX vs. BANK OF AMERICA NT and SA

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ITA/119/1999HC Bombay06 March 2007Bench: HON'BLE SHRI JUSTICE DR. S. RADHAKRISHNAN, HON'BLE SHRI JUSTICE J.P. DEVADHAR3 pages
AI SummaryAllowed

What did the High Court hold?

The High Court noted that both the petitioner (Commissioner of Income-tax) and the respondent (Bank of America NT & SA) agreed that the issue involved in the applications was squarely covered by the High Court's own previous judgment in the case of Commissioner of Income-tax v. Bank of Maharashtra, reported in 264 ITR 568. This precedent was stated to be in favor of the assessee and against the revenue. Consequently, the Court found no reason to deviate from its earlier ruling. The Rule issued in the applications was discharged, and all applications were disposed of in light of the established precedent.

What were the facts?

The Commissioner of Income-tax (Petitioner) filed applications before the Bombay High Court challenging orders of the Income Tax Appellate Tribunal (ITAT). The respondent is Bank of America NT & SA. The assessment years involved are 1976-77, 1977-78, 1978-79, 1981-82, 1982-83, and 1983-84. The core issue pertains to the deletion of an addition made by the Assessing Officer on account of rediscounting charges. The Commissioner (Appeals) had deleted this addition, and the ITAT upheld that deletion. The dispute centers on whether the bank had an overriding title from IDBI at the time of rediscounting the bills.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in upholding the order of the CIT(A) deleting the addition on account of rediscounting charges, holding that at the time of rediscounting the bills there was an overriding title of IDBI? (Question of law) Assessee's Contention: The assessee argued that the issue was squarely covered by the High Court's judgment in Commissioner of Income-tax v. Bank of Maharashtra (264 ITR 568), which was in favor of the assessee and against the revenue. Revenue's Contention: The judgment records no specific arguments for the revenue beyond its role as the petitioner challenging the ITAT's order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORDINARY ORDINARY ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION ORIGINAL CIVIL JURISDICTION INCOME TAX APPLICATION NO.115 OF 1999 INCOME TAX APPLICATION NO.115 OF 1999 INCOME TAX APPLICATION NO.115 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.116 OF 1999 INCOME TAX APPLICATION NO.116 OF 1999 INCOME TAX APPLICATION NO.116 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.117 OF 1999 INCOME TAX APPLICATION NO.117 OF 1999 INCOME TAX APPLICATION NO.117 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.118 OF 1999 INCOME TAX APPLICATION NO.118 OF 1999 INCOME TAX APPLICATION NO.118 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.119 OF 1999 INCOME TAX APPLICATION NO.119 OF 1999 INCOME TAX APPLICATION NO.119 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.120 OF 1999 INCOME TAX APPLICATION NO.120 OF 1999 INCOME TAX APPLICATION NO.120 OF 1999 The Commissioner of Income tax ..Petitioner. V/s. Bank of America NT & SA ..Respondent. Mr.P.S.Sahadevan with A. Kotangale for petitioner in all the applications. Mr.Percy Pardiwala i/b. M/s.Matubhai Janietram for respondent in all the applications. CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND CORAM : DR. S.RADHAKRISHNAN AND J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ. J.P.DEVADHAR, JJ.

DATED : 6TH MARCH, 2007. DATED : 6TH MARCH, 2007. DATED : 6TH MARCH, 2007.

ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) ORAL JUDGMENT (PER DR.S.RADHAKRISHNAN, J.) Heard the learned counsel for the petitioner and the respondent. The above applications were admitted on the following question of law:- " Whether on the facts and in the circumstances of the case, the ITAT was right in law upholding the order of the CIT (A) deleting the addition on account of rediscounting charges holding that at the CNR No : HCBM020027331999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 08:02:00

- = : 2 : = - time of rediscounting the bills there was an over riding titles of IDBI ? " 2. The above applications pertain to the assessment years 1976-77, 1977-78, 1978-79, 1981-82, 1982-83 and 1983-84 respectively. 3. Both the learned counsel for the petitioner and the respondent state that the issue involved in the above applications is squarely covered by the Judgment of our Court in the case of Commissioner of Income-tax Commissioner of Income-tax Commissioner of Income-tax V/s. Bank of Maharashtra V/s. Bank of Maharashtra V/s. Bank of Maharashtra reported in 264 I.T.R. 568 264 I.T.R. 568 264 I.T.R. 568 in favour of the assessee and against the revenue. 4. In view thereof, Rule stands discharged. 5. All the applications are disposed of. (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (DR.S.RADHAKRISHNAN, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) (J.P. DEVADHAR, J.) Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 08:02:00

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