COMMISSIONER OF INCOME TAX vs. M/S ATLAS CYCLE INDUS

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ITA/92/2002HC Punjab & HaryanaPHHC01051718200220 July 2010Bench: MR. JUSTICE AJAY KUMAR MITTAL,MR. JUSTICE ADARSH KUMAR GOEL2 pages

AI SummaryDismissed

What did the High Court hold?

The High Court held that the substantial question of law proposed by the revenue had to be decided against the revenue and in favour of the assessee. This decision was made in view of the High Court's order passed on the same date in a related appeal, ITA No.161 of 2002 (The Commissioner of Income Tax, Rohtak v. The Atlas Cycle Industries Limited, Sonepat). Consequently, the appeal filed by the revenue was dismissed. The reasoning for this dismissal is directly linked to the outcome of the related appeal, implying that the principle applied in that case governed this one. No specific issue was left undecided.

What were the facts?

The appeal was filed by the Commissioner of Income Tax, Rohtak (revenue) against an order dated January 17, 2001, passed by the Income Tax Appellate Tribunal (ITAT), Delhi Bench 'A', New Delhi. The order pertained to assessment year 1986-87 and concerned a disallowance made by the Assessing Officer (AO) under Section 37(2A) of the Income Tax Act, 1961. The ITAT had confirmed the order of the Commissioner of Income Tax (Appeals) [CIT(A)] in directing a reduction of this disallowance. The amount in dispute was not explicitly stated. The procedural history involved an appeal by the revenue to the High Court under Section 260A of the Act.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the ITAT was justified in confirming the order of CIT(A) in directing the reduction of the disallowance made by the AO under section 37(2A) of Income Tax Act, 1961? Assessee's contentions: The judgment does not record any specific contentions made by the assessee. Revenue's contentions: The revenue contended that the ITAT was not justified in confirming the CIT(A)'s order which directed a reduction of the disallowance made by the AO under Section 37(2A) of the Act. The revenue sought to challenge this decision on a substantial question of law.

Which sections of the Income-tax Act were involved?

Section 37(2A),Section 260A

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No.92 of 2002 Date of decision: 20.7.2010 The Commissioner of Income Tax, Rohtak -----Appellant Vs. M/s The Atlas Cycle Industries Limited, Sonepat ----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON’BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Krishan Kumar Mehta, Advocate for the revenue. Mr. Akshay Bhan, Advocate for the assessee. Adarsh Kumar Goel,J. This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (for short, ‘the Act’) against order dated 17.1.2001 passed by the Income Tax Appellate Tribunal, Delhi Bench ‘A’, New Delhi in ITA No.3410/Del/94 for the assessment year 1986-87, proposing to raise following substantial question of law:- “Whether on the facts and in the circumstances of the case, the ITAT was justified in confirming the order of CIT(A) in directing the reduction of the disallowance made by the AO under section 37(2A) of Income Tax Act, 1961?” In view of our order passed today in ITA No.161 of 2002 (The Commissioner of Income Tax, Rohtak v. The Atlas Cycle Industries

ITA No.92 of 2002 Limited, Sonepat), the question proposed has to be decided against the revenue and in favour of the assessee. We order accordingly.

The appeal is dismissed. (Adarsh Kumar Goel) Judge July 20, 2010 (Ajay Kumar Mittal) ‘gs’ Judge 2

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