THE COMMISSIONER OF I-TAX MUMBAI CITY-V, MUMBAI vs. M/S.GREAVES LTD.

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ITA/152/1999HC Bombay06 March 2007Bench: HON'BLE SHRI JUSTICE DR. S. RADHAKRISHNAN, HON'BLE SHRI JUSTICE J.P. DEVADHAR2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court noted that both the petitioner (Revenue) and the respondent (Assessee) categorically stated that the issue involved in the applications was squarely covered by the judgment of the High Court in the case of Sandvik Asia Ltd. v. Commissioner of Income-tax, reported in (2006) 280 I.T.R. 643 (S.C.). This judgment was in favour of the assessee and against the revenue. Therefore, in view of this admitted position, the High Court discharged the Rule and disposed of both applications. The specific reasoning of the ITAT or the detailed ratio decidendi of the Sandvik Asia Ltd. case was not elaborated upon in this judgment, as the parties conceded the matter based on the precedent. No issue was left undecided.

What were the facts?

The Commissioner of Income-tax (Petitioner) filed applications before the Bombay High Court challenging the orders of the Income Tax Appellate Tribunal (ITAT). The respondent is Greaves India Ltd. The applications pertain to assessment years 1987-88 and 1986-87. The core issue revolves around the ITAT's decision to allow the assessee's claim for payment of interest on interest. Both parties agreed that the matter was squarely covered by a previous judgment of the High Court in the case of Sandvik Asia Ltd. v. Commissioner of Income-tax.

What were the issues?

1. Whether, on the facts and in the circumstances of the case and in law, the ITAT was justified in allowing the assessee's claim for payment of interest on interest? (Question of law) Assessee's Contention: Not recorded in the judgment. Revenue's Contention: Not recorded in the judgment. However, the Revenue is the petitioner challenging the ITAT's order, implying they argued against the allowance of interest on interest. Both parties agreed that the issue was covered by the Supreme Court judgment in Sandvik Asia Ltd. v. Commissioner of Income-tax (2006) 280 I.T.R. 643 (S.C.), which was in favour of the assessee.

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.151 OF 1999 INCOME TAX APPLICATION NO.151 OF 1999 INCOME TAX APPLICATION NO.151 OF 1999 WITH WITH WITH INCOME TAX APPLICATION NO.152 OF 1999 INCOME TAX APPLICATION NO.152 OF 1999 INCOME TAX APPLICATION NO.152 OF 1999 The Commissioner of Income tax ..Petitioner. V/s. Greaves India Ltd. ..Respondent. Mr.P.S.Sahadevan with for petitioner in both the applications. Mr. S.J.Mehta respondent in both 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 and in law, ITAT was justified in allowing the claim of the assessee i.e. payment of interest on interest ? " 2. The above applications pertain to the assessment years 1987-88 and 1986-87 respectively. 3. Both the learned counsel for the petitioner CNR No : HCBM020040061999 Uploaded on - 21/08/2020 Downloaded on - 28/10/2026 05:59:01

- = : 2 : = - and the respondent categorically states that the issue involved in the above applications is squarely covered by the Judgment of our Court in the case of Sandvik Sandvik Sandvik Asia Ltd. V/s. Commissioner of Income-tax Asia Ltd. V/s. Commissioner of Income-tax Asia Ltd. V/s. Commissioner of Income-tax reported in (2006) 280 I.T.R. 643 (S.C.) (2006) 280 I.T.R. 643 (S.C.) (2006) 280 I.T.R. 643 (S.C.) in favour of the assessee and against the revenue. 4. In view thereof, Rule stands discharged. 5. Both 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 05:59:01 Powered by TCPDF (www.tcpdf.org)

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