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

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ITA/120/1999HC Bombay06 March 2007Bench: HON'BLE SHRI JUSTICE DR. S. RADHAKRISHNAN, HON'BLE SHRI JUSTICE J.P. DEVADHAR3 pages
AI SummaryDismissed

What did the High Court hold?

The High Court of Bombay held that the issue involved in these applications was squarely covered by its own prior judgment in the case of Commissioner of Income-tax V/s. Bank of Maharashtra, reported in 264 I.T.R. 568. This precedent was stated to be in favour of the assessee and against the revenue. Consequently, the Court found no reason to interfere with the ITAT's decision. The ratio decidendi is that if a prior judgment of the jurisdictional High Court directly addresses and decides the same issue in favour of the assessee, subsequent similar matters should follow that precedent. The Rule granted in these applications was discharged, and all applications were disposed of in terms of the precedent.

What were the facts?

The Commissioner of Income-tax (Revenue) filed applications before the Bombay High Court challenging orders of the Income Tax Appellate Tribunal (ITAT). The ITAT had upheld the Commissioner of Income-tax (Appeals) order deleting an addition on account of rediscounting charges. The assessee 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 of the dispute revolves around whether the ITAT was correct in holding that at the time of rediscounting bills, the bank had an overriding title from IDBI, justifying the deletion of the addition.

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 contentions: The assessee argued that the issue is squarely covered by the High Court's judgment in Commissioner of Income-tax V/s. Bank of Maharashtra, reported in 264 I.T.R. 568, which was in favour of the assessee and against the revenue. Revenue's contentions: The judgment records no specific contentions for the revenue beyond their participation in the application.

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 : HCBM020027341999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:58:58

- = : 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 05:58:58

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