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

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ITA/406/2014HC Punjab & HaryanaPHHC01109559201414 May 20151 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, 1961, which became effective on 01.04.2010, is retrospective. This finding is based on a previous Division Bench judgment 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 High Court concluded that there was no contravention of the provisions of Section 40(a)(ia) by the assessee-respondent. The question of law sought to be raised by the appellant was therefore answered against the appellant. The appeal was dismissed.

What were the facts?

The appeal is filed by the Commissioner of Income Tax, Faridabad (appellant) against the order of the Income Tax Appellate Tribunal (ITAT) dated 14.03.2014. The respondent is M/s Gurunanak Engineering Services. The High Court is considering the appeal against the ITAT's order. The core of the dispute revolves around the interpretation of Section 40(a)(ia) of the Income Tax Act, 1961, specifically concerning an amendment made by the Finance Act, 2010, which came into effect on 01.04.2010. The High Court notes a previous judgment on a similar issue.

What were the issues?

1. Whether the amendment to Section 40(a)(ia) of the Income Tax Act, 1961, effective from 01.04.2010, is retrospective in nature? Assessee's Contention: The assessee implicitly argues that the amendment is retrospective, as the High Court's decision in a similar case supports this view, leading to no contravention of the said section by the assessee. Revenue's Contention: The revenue, as the appellant, sought to raise a question of law, implying disagreement with the ITAT's order which was likely based on the retrospective application of the amendment. The judgment states the question of law was sought to be raised against the appellant.

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-406-2014 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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