COMMISSIONER OF INCOME TAX FARIDABAD vs. M/S GURUNANAK ENGINEERING SERVICES

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ITA/367/2014HC Punjab & HaryanaPHHC01109515201414 May 2015Bench: MR. JUSTICE M.M. AGGARWAL,MR. JUSTICE A.B. CHAUDHARI1 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the amendment to Section 40(a)(ia) of the Income Tax Act, which became effective from 01.04.2010, is retrospective. This finding is based on a prior judgment of a Division Bench of the same High Court in the case of Commissioner of Income Tax, Faridabad Vs M/s Foremost International Pvt. Ltd. dated 07.10.2014. Consequently, the court concluded that there was no contravention of Section 40(a)(ia) by the assessee-respondent. The question of law sought to be raised by the appellant (revenue) was therefore answered against them. The appeal was dismissed.

What were the facts?

This is an appeal filed by the Commissioner of Income Tax, Faridabad against an order of the Income Tax Appellate Tribunal dated 14.03.2014. The assessee is M/s Gurunanak Engineering Services. The appeal concerns the assessment year(s) not explicitly stated in the judgment. The core of the dispute revolves around the interpretation and applicability of Section 40(a)(ia) of the Income Tax Act. The High Court refers to a previous judgment by a Division Bench of the same court in Commissioner of Income Tax, Faridabad Vs M/s Foremost International Pvt. Ltd., dated 07.10.2014, which dealt with a similar issue.

What were the issues?

1. Whether the amendment to Section 40(a)(ia) of the Income Tax Act, which came into effect on 01.04.2010, is retrospective in nature? (Question of law) Assessee's contention: The assessee relies on the judgment of the High Court in Commissioner of Income Tax, Faridabad Vs M/s Foremost International Pvt. Ltd. (dated 07.10.2014), which held that the amendment to Section 40(a)(ia) is retrospective. Therefore, there was no contravention of the provisions of Section 40(a)(ia) by the assessee. Revenue's contention: The revenue is the appellant and seeks to challenge the Tribunal's order. The judgment does not record specific arguments made by the revenue in this appeal, but it is implied they are contesting the retrospective application of the amendment.

Which sections of the Income-tax Act were involved?

Section 40(a)(ia)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA-367-2014 Date of decision:- 14.05.2015

The Commissioner of Income Tax, Faridabad ...Appellant Versus

M/s Gurunanak Engineering Services ...Respondent

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

HON’BLE MR. JUSTICE G.S. SANDHAWALIA

Present: Mr. Tajender K. Joshi, Advocate,

for the appellant. * * * * S.J. VAZIFDAR, A.C.J. (ORAL)

This is an appeal against the order of the Income Tax Appellate Tribunal dated 14.03.2014. 2. A Division Bench of this Court by an order and judgement dated 07.10.2014 in Commissioner of Income Tax, Faridabad Vs M/s Foremost International Pvt. Ltd. held that the amendment to Section 40(a)(ia) which came into effect on 01.04.2010 by Finance Act, 2010 is retrospective. Thus, in any event, there was no contravention of the provisions of Section 40(a)(ia) of the Act by the assessee-respondent. 3. The question of law sought to be raised in the appeal is, therefore, answered against the appellant. 4. The appeal is accordingly dismissed.

(S.J. VAZIFDAR) ACTING CHIEF JUSTICE

(G.S. SANDHAWALIA)

JUDGE 14.05.2015 Amodh

AMODH SHARMA 2015.05.15 10:40 I attest to the accuracy and authenticity of this document chandigarh

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