C.I.T. LDH. vs. M/S THAKUR DEVI
What did the High Court hold?
The High Court, in view of the submission made by the revenue's counsel, answered the question of law against the revenue and in favour of the assessee. The reasoning provided is that a similar question of law on similar facts had been decided by the High Court in a previous case (ITR No.287 of 1995 decided on 21.5.2008) in favour of the assessee. Therefore, following its own precedent, the High Court held that the assessee should be treated as an Industrial Company and taxed at the lower rate. The reference application was disposed of accordingly. No issue was expressly left undecided.
What were the facts?
The Commissioner of Income-tax, Central, Ludhiana (the revenue) filed an application before the Income-Tax Appellate Tribunal (ITAT) for referring a question of law to the High Court. The ITAT, vide its order dated 18.1.1996 in RA No.281/Chandi/1995, arising out of ITA No.721/Chandi/1990 for assessment year 1987-88, referred a question of law to the High Court. The ITAT's earlier order being challenged was dated 30.5.1995. The dispute concerns whether the assessee, M/s Thakur Devi Investment (P) Ltd., Ludhiana, should be treated as an 'Industrial Company' and taxed at the lower rate applicable to such companies.
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 the tax be charged at the low rate applicable to an Industrial Company? (Question of law) Assessee's Contention: Not recorded. Revenue's Contention: The revenue, through its counsel, fairly stated that a similar question of law on similar facts has already been answered by the High Court against the revenue in ITR No.287 of 1995 decided on 21.5.2008.
AI-generated summary — verify with the full judgment below
IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITR No.15 of 1996 Date of decision:26.5.2008 The Commissioner of Income-tax, (Central) Ludhiana ......Applicant Versus M/s Thakur Devi Investment (P) Ltd., Ludhiana ......Respondent CORAM:- HON'BLE MR.JUSTICE RAJIVE BHALLA HON'BLE MR.JUSTICE RAKESH KUMAR GARG * * * Present: Shri Krishan Mehta, Advocate for the applicant-revenue. Shri Akshay Bhan, Advocate for the respondent-assessee. * * * Rakesh Kumar Garg, J . On the application filed by the revenue, the Tribunal vide its order dated 18.1.1996 passed in RA No.281/Chandi/1995 arising out of ITA No.721/Chandi/1990 for the assessment year 1987-88 has referred the following question of law said to be arising out of the Tribunal's order dated 30.5.1995, to this Court for its opinion:- “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 the tax be charged at low rate applicable to an Industrial Company?” Sh. Krishan Mehta, learned counsel for the revenue, has very fairly stated that similar question of law on similar facts has been answered by this Court against the revenue in ITR No.287 of 1995 decided on 21.5.2008.
ITR No.15 of 1996 -2- In view of the above, question of law as referred by the Tribunal is answered against the revenue and in favour of the assessee. The reference application is disposed of accordingly. (RAKESH KUMAR GARG) JUDGE May 26, 2008 (RAJIVE BHALLA) ps
JUDGE
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