COMMISIONER OF INCOME TAX vs. M/S ROADMASETER INDUSTRIES OF INDIA LTD.

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ITA/85/2000HC Punjab & HaryanaPHHC01036401200030 January 2007Bench: MR. JUSTICE M.M. KUMAR,MR. JUSTICE VINOD KUMAR SHARMA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the ITAT was right in law in allowing the deduction under Section 32AB on self-fabricated machinery. The Court's decision was based on its own prior judgment concerning the same assessee for the assessment year 1988-89 (ITR No. 13 of 1996, decided on 27.11.2006). That judgment, in turn, had relied on another Division Bench decision of the High Court in CIT Patiala v. M/s Hindustan Wire Products Ltd., Patiala (ITR No. 118 of 1996, decided on 20.9.2006). The crucial factor was that the learned counsel for the Revenue did not dispute this established position. Therefore, the question posed in the present appeal was decided against the Revenue and in favour of the assessee.

What were the facts?

This case concerns an appeal by the Commissioner of Income Tax (Revenue) against an order of the Income Tax Appellate Tribunal (ITAT) for the assessment year 1990-91. The ITAT had allowed a deduction under Section 32AB of the Income Tax Act, 1961, to the assessee, M/s Roadmaster Industries of India Ltd., for self-fabricated machinery. The High Court was referred a substantive question of law by the ITAT. The Revenue has challenged the ITAT's decision. The procedural history indicates that the ITAT had previously decided a similar issue for the assessee in an earlier assessment year (1988-89).

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the ITAT was right in law in allowing deduction u/s 32AB on self-fabricated machinery? Assessee's contentions: The judgment does not record any specific contentions made by the assessee. Revenue's contentions: The Revenue's contention is implicit in the appeal filed against the ITAT's order allowing the deduction for self-fabricated machinery under Section 32AB. The Revenue likely argued that self-fabricated machinery does not qualify for such a deduction, possibly relying on the interpretation of the provision or relevant case law. However, the judgment explicitly states that the Revenue did not dispute the position taken by the High Court based on its prior decisions.

Which sections of the Income-tax Act were involved?

Section 32AB

AI-generated summary — verify with the full judgment below

ITA 85 of 2000 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH

ITA No.85 of 2000 Date of decision 30 .1.2007 Commissioner of Income Tax. ..Appellant Versus M/s Roadmaster Industries of India Ltd. .. Respondent CORAM: HON'BLE MR. JUSTICE M.M. KUMAR HON'BLE MR. JUSTICE VINOD K. SHARMA PRESENT: Mr. Sanjay Bansal, Advocate for the appellant Mr. Yogesh Putney Advocate for the revenue. M.M.Kumar, J. The following substantive question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench while disposing of ITR No. 181 Chd 92 in respect of the assessment year 1990-91: ” Whether on the facts and in the circumstances of the case, the ITAT was right in law in allowing deduction u/s 32 AB on self fabricated machinery ?” The afore-mentioned question has already been considered in the case of the assessee itself in respect of the earlier year 1988-89 in ITR No. 13 of 1996 decided by a Division Bench of this court on 27.11.2006. The question has been answered against the revenue and in favour of the assessee on the ground that similar question was considered by this Court in in ITR No. 118 of 1996 decided on 20.9.2006 CIT Patiala v. M/s Hindustan

ITA 85 of 2000 2 Wire Products

Ltd.

, Patiala.

The afore-mentioned position has not been disputed by the learned counsel for the revenue. In view of the above, the question posed in this appeal is decided against the revenue and in favour of the assessee. (M.M.Kumar) Judge (Vinod K. Sharma) 30.1.2007 Judge okg

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