C.I.T. ROHTAK vs. M/S SARDANA CLOTH

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ITR/5/1991HC Punjab & HaryanaPHHC01024521199102 November 2006Bench: MR. JUSTICE RAJESH BINDAL,MR. JUSTICE ADARSH KUMAR GOEL1 pages

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What did the High Court hold?

The High Court held that the question referred to it was identical to a question previously decided by the same Court in favour of the assessee. In the prior case, I.T.R. No.72 of 1987, decided on November 30, 2004, the Court had ruled against the revenue on an identical issue concerning the assessee, M/s Sardana Cloth Store, Palwal, for assessment year 1982-83. Therefore, following its own precedent, the Court answered the present reference against the revenue and in favour of the assessee. The operative direction was to answer the question in favour of the assessee.

What were the facts?

The Commissioner of Income Tax, Haryana, Rohtak (the revenue) has referred a question of law to the High Court of Punjab and Haryana at Chandigarh arising from an order of the Income Tax Appellate Tribunal, Delhi Bench 'E', dated October 27, 1989. The appeal before the Tribunal concerned assessment year 1983-84, but the specific question referred pertains to assessment year 1982-83. The dispute revolves around the benefit of registration under Section 185(1)(a) of the Income Tax Act, 1961, for the assessee, M/s Sardana Cloth Store, Palwal. The Tribunal had directed the Income-tax Officer to grant this benefit.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the Tribunal has been right in law in directing the Income-tax Officer to accord benefit of registration in terms of Section 185(1)(a) of the I.T. Act, 1961 in respect of assessment year 1982-83. Assessee's contentions: Not recorded. Revenue's contentions: The revenue stated that an identical question had been adjudicated upon and decided against the revenue by this Court in a previous case involving the same assessee for assessment year 1982-83, namely, I.T.R. No.72 of 1987, The Commissioner of Income-tax Haryana, Rohtak v. M/s Sardana Cloth Store, Palwal, decided on November 30, 2004.

Which sections of the Income-tax Act were involved?

Section 185(1)(a)

AI-generated summary — verify with the full judgment below

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. I.T.R. No.5 of 1991 Date of decision: 02.11.2006 The Commissioner of Income Tax, Haryana, Rohtak ---Applicant Vs. M/s Sardana Cloth Store, Palwal. -----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON'BLE MR JUSTICE RAJESH BINDAL Present: Mr. Yogesh Putney, Advocate for the revenue. ----- ORDER: Following question of law has been referred for the opinion of this Court by the Income Tax Appellate Tribunal, Delhi Bench ‘E’, New Delhi, arising out of its order dated 27.10.1989 in I.T.A. No.5956/Del/86 in respect of assessment year 1983-84:- “Whether on the facts and in the circumstances of the case, the Tribunal has been right in law in directing the Income-tax Officer to accord benefit of registration in terms of Section 185 (1) (a) of the I.T.Act, 1961 in respect of assessment year 1982- 83.”

Learned counsel for the revenue states that identical question has been adjudicated upon and decided against the revenue by this Court in case of the assessee for the assessment year 1982-83 on 30.11.2004 in I.T.R. No.72 of 1987 The Commissioner of Income-tax Haryana, Rohtak v. M/s Sardana Cloth Store, Palwal..

In view of above, the question referred is answered against the revenue and in favour of the assessee. ( ADARSH KUMAR GOEL ) JUDGE November 02, 2006 ( RAJESH BINDAL ) ashwani JUDGE

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