CIT LUDHIANA vs. M/S BAHADUR CHAND INVESTMENT L

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ITR/118/1999HC Punjab & HaryanaPHHC01038548199921 December 2010Bench: MR. JUSTICE ADARSH KUMAR GOEL,MR. JUSTICE RAJESH BINDAL1 pages

AI SummaryDismissed

What did the High Court hold?

The High Court of Punjab and Haryana, in its judgment dated December 21, 2010, referred the question of law back to the Tribunal. However, the provided text indicates that the learned counsel for both parties fairly submitted that the matter was covered by a previous judgment of the same court in ITR No. 187 of 1996, The Commissioner of Income Tax (Central), Ludhiana vs M/s Bhagyoday Investment (P) Limited, Ludhiana, dated August 7, 2009. Consequently, the High Court answered the referred question in favour of the revenue and against the assessee, disposing of the reference. The specific reasoning from the cited precedent is not detailed in this excerpt, but the outcome implies that the assessee was not considered an industrial company for tax purposes.

What were the facts?

The Commissioner of Income Tax (Central), Ludhiana, referred a question of law to the High Court of Punjab and Haryana at Chandigarh concerning an order passed by the Income Tax Appellate Tribunal (ITAT), Chandigarh Bench, dated January 22, 1996. This order pertained to assessment year 1988-89 and involved M/s Bahadur Chand Investment (P) Ltd., Ludhiana. The core of the dispute was whether the assessee should be treated as an industrial company for tax purposes, thereby qualifying for a lower tax rate. The High Court was asked to decide if the ITAT's ruling in favour of the assessee on this point was legally correct.

What were the issues?

1. Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee be treated as an Industrial Company and that tax be charged at the lower rate applicable to an industrial company? Assessee's Contention: The ITAT had held that the assessee should be treated as an industrial company and taxed at the lower rate applicable to such companies. The assessee would likely support this finding. Revenue's Contention: The revenue, by referring the question to the High Court, implicitly challenges the ITAT's finding. The revenue likely argued that the assessee did not meet the criteria for being classified as an industrial company and therefore should not be taxed at the lower rate.

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR 118 of 1999 (O&M) The Commissioner of Income Tax (Central), Ludhiana .... Applicant vs M/s Bahadur Chand Investment (P) Ltd. Ludhiana ...Respondent Coram: Hon'ble Mr. Justice Adarsh Kumar Goel Hon'ble Mr. Justice Rajesh Bindal Present: Mr. Rajesh Katoch, Advocate, for the revenue. Mr. Akshay Bhan, Advocate, for the assessee. Adarsh Kumar Goel, J. The Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh, has referred the following question of law for opinion of this court arising out of its order dated 22.1.1996 in I.T.A. No. 1911/Chandi/91 for the assessment year 1988-89:- “Whether, on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in law in holding that the assessee be treated as an Industrial Company and that tax be charged at the lower rate application to an industrial company?” Learned counsel for the parties fairly submit that the matter is covered by judgment of this court in ITR No. 187 of 1996 The Commissioner of Income Tax (Central), Ludhiana vs M/s Bhagyoday Investment (P) Limited, Ludhiana, dated 7.8.2009. In view of the above, the question referred is answered in favour of the revenue and against the assessee. The reference is disposed of. (Adarsh Kumar Goel) Judge 21.12.2010 (Rajesh Bindal) vs Judge

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