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

ITA/236/2012HC Punjab & HaryanaPHHC01099312201211 August 20161 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the Tribunal had rightly deleted the addition relating to deem dividend. This decision was based on the High Court's own prior order dated 28.10.2013, which had considered a group of income tax appeals, including the present one. In that earlier order, the Division Bench had affirmed the ITAT's finding that the deem dividend addition was to be deleted. The ratio decidendi is that if a High Court has already ruled on a specific issue in a group of appeals, subsequent appeals dealing solely with that same issue should follow the precedent set. The operative direction was to dismiss the appeal, upholding the Tribunal's deletion.

What were the facts?

This appeal by the Commissioner of Income Tax (Central), Ludhiana, is against an order of the Income Tax Appellate Tribunal (ITAT) concerning the assessment year 2007-08. The core issue involved deeming dividend. A Division Bench of the High Court of Punjab and Haryana, in a prior order dated 28.10.2013, had considered a group of income tax appeals, including this one. In that earlier decision, the High Court had affirmed the ITAT's deletion of the addition related to deeming dividend. While other appeals had further issues, this specific appeal solely concerned the deem dividend matter.

What were the issues?

1. Whether the Tribunal was correct in deleting the addition relating to deem dividend, as a question of law? The Revenue contended that the Tribunal's deletion of the deem dividend addition was incorrect. The assessee's arguments are not explicitly detailed in the provided judgment, but their position was implicitly supported by the Tribunal's decision which was later upheld by the High Court. The judgment does not mention any specific authorities, circulars, or precedents relied upon by either party in this particular High Court proceeding, other than referencing the High Court's own prior order.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No. 236 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 2007-08. The appellant/Department raised substantial questions of law relating to deem 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 12:45 I attest to the accuracy and authencity of this document Chandigarh

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