CIT LUDHIANA vs. M/S MAHAVIR SPINNING MILLS LTD
What did the High Court hold?
The High Court held that the Tribunal was right in law in allowing extra shift allowance on a generator. The Court noted that the counsel for the Revenue did not dispute that an identical question had been previously adjudicated by the High Court in Commissioner of Income Tax, Jalandhar Vs. Saraswati Industrial Syndicate Ltd., (2002) 257 ITR 779. In that precedent, the question was answered against the Revenue and in favour of the assessee. Therefore, following its own earlier decision, the High Court answered the referred question against the Revenue and in favour of the assessee. The reference was disposed of accordingly.
What were the facts?
The Commissioner of Income-Tax, Ludhiana (Revenue) filed an Income Tax Reference (ITR) No. 125 of 1999 before the High Court of Punjab and Haryana at Chandigarh. The reference arose from an order dated 13.10.1995 passed by the Income Tax Appellate Tribunal, Chandigarh Bench, in I.T.A. No. 133/Chandi/90. The assessment year in question was 1986-87. The dispute concerned the allowance of extra shift allowance on a generator. The High Court was asked to decide a specific question of law referred by the Tribunal.
What were the issues?
1. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in allowing extra shift allowance on a generator? The Revenue contended that the Tribunal erred in allowing extra shift allowance on a generator. The Assessee (M/s Mahavir Spinning Mills Ltd., Ludhiana) argued in favour of the Tribunal's decision. The judgment does not explicitly detail the arguments of each side beyond the core issue, but it notes that the Revenue conceded that an identical question had been previously decided by the High Court in favour of the assessee.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH I.T.R No.125 of 1999 Date of decision:4.12.2006 The Commissioner of Income-Tax, Ludhiana ...Petitioner Versus M/S Mahavir Spinning Mills Ltd., Ludhiana ...Respondent CORAM: HON'BLE MR.JUSTICE ADARSH KUMAR GOEL HON'BLE MR.JUSTICE RAJESH BINDAL Present: Mr.S.K.Garg Narwana, Advocate for the revenue Mr.Akshay Bhan, Advocate for the assessee. **** JUDGMENT Following question of law has been referred for opinion of this Court by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh arising out of its order dated 13.10.1995 passed in I.T.A.No.133/Chandi/90, in respect of the assessment year 1986- 87. “Whether on the facts and in the circumstance of the case, the Tribunal was right in law in allowing extra shift allowance on generator?” It is not disputed by the counsel for the revenue that identical question has already been gone into by this Court in Commissioner of Income Tax, Jalandhar Vs. Saraswati Industrial Syndicate Ltd.,(2002) 257 ITR 779 and the question has been answered against the Revenue and in favour of the assessee. Accordingly, the question referred is answered against the Revenue and in favour of the assessee. The reference is disposed of. (Adarsh Kumar Goel) Judge December 04,2006 (Rajesh Bindal) Pka Judge
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