COMMISSIONER OF INCOME TAX LDH vs. SATISH BALA MALHOTRA & ORS

ITA/235/2012HC Punjab & HaryanaPHHC01099311201211 August 20161 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Punjab and Haryana, by its order dated 11.08.2016, dismissed the appeal filed by the Commissioner of Income Tax (Central), Ludhiana. The dismissal was based on a prior order of the same Division Bench dated 28.10.2013, which had already held that the Income Tax Appellate Tribunal had rightly deleted the addition concerning deemed dividend for the assessment year 2006-07. As no other issues were involved in this specific appeal, the Court found no reason to deviate from its earlier decision. The operative direction was the dismissal of the appeal, affirming the Tribunal's deletion of the deemed dividend addition.

What were the facts?

The appeal concerns the assessment year 2006-07. The Commissioner of Income Tax (Central), Ludhiana (the appellant/Department) is challenging an order of the Income Tax Appellate Tribunal (Tribunal). The Tribunal had deleted an addition made by the revenue concerning deemed dividend. A Division Bench of the High Court of Punjab and Haryana, by an order dated 28.10.2013, had previously held that the Tribunal had rightly deleted this addition. In other related appeals, other issues were also involved, leading to the issuance of notice of motion. However, in the present appeal, no other issue arises beyond the deemed dividend addition.

What were the issues?

1. Whether the Tribunal was correct in deleting the addition made by the revenue on account of deemed dividend, in relation to the assessment year 2006-07? Assessee's Contention: The judgment does not record any specific contentions made by the assessee before the High Court. However, it notes that the Tribunal had rightly deleted the addition, implying the assessee likely supported the Tribunal's order. Revenue's Contention: The appellant/Department contended that substantial questions of law arose concerning deemed dividend and challenged the Tribunal's deletion of the addition. The revenue sought to uphold the addition made in the assessment.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No. 235 of 2012 (O&M) Date of decision:- 11.08.2016

Commissioner of Income Tax (Central), Ludhiana ..Appellant Versus

Smt. Satish Bala Malhotra and others

...Respondents

CORAM: HON'BLE MR. JUSTICE S. J. VAZIFDAR, CHIEF JUSTICE

HON’BLE MR. JUSTICE DEEPAK SIBAL

Present: Mr. Rajesh Katoch, Advocate for the appellant.

Mr. Pankaj Jain, Senior Advocate with

Mr. Sachin Bhardwaj, Advocate

Mr. Divya Suri, Advocate

Mr. Gaurav Mittal, Advocate for the respondents. * * * * S.J. VAZIFDAR, C.J. (ORAL)

This is an appeal against the order of the Tribunal in respect of the assessment year 2006-07. The appellant/Department raised substantial questions of law relating to deemed dividend. The Division Bench of this Court by an order dated 28.10.2013, in a group of income tax appeals including the present appeal, held that the Tribunal had rightly deleted this addition. In the other appeals, other issues were also involved and therefore, notice of motion was issued in all the appeals in respect of the other issues. However, in this appeal, no other issue arises. Accordingly, the appeal is dismissed in view of the order dated 28.10.2013.

(S.J. VAZIFDAR) CHIEF JUSTICE

(DEEPAK SIBAL)

JUDGE 11.08.2016 kv Whether speaking/reasoned

: Yes/No

Whether reportable

: Yes/No VERMA KUMUD 2016.08.17 12:55 I attest to the accuracy and authencity of this document Chandigarh

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