THE COMMISSIONER OF INCOME TAX vs. M/S. CHOWGULE AND COMPANY LTD MARMUGAO

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TXA/3/2010HC BombayHCBM05002855200920 August 2015Author: MOHIT S. SHAH, C.J.,HON'BLE SMT. JUSTICE ANUJA PRABHUDESSAI2 pages
AI SummaryRemanded

What did the High Court hold?

The High Court, following its own judgment dated 7/05/2015 in Sesa Goa Ltd. V/s. The Commissioner of Income Tax (Tax Appeal No.53/2006), remanded the matter back to the Assessing Officer. The AO is directed to reconsider the question of whether receipts from barge hire, machinery hire, ore processing, transhipper loader charges, and miscellaneous income constitute operational income eligible for deduction under Section 80HHC, in light of the aforesaid judgment of the High Court. The appeal stands disposed of accordingly. No specific finding was given on the merits of the substantial question of law by the High Court in this judgment; it was purely a procedural remand.

What were the facts?

The appeal is filed by the Commissioner of Income Tax (Appellant) against the order dated 8/04/2009 of the Income Tax Appellate Tribunal (ITAT), Panaji Bench. The assessee is M/s. Chowgule & Company Ltd. (Respondent). The assessment year in question is 2004-05. The High Court admitted the appeal on a substantial question of law concerning the classification of certain receipts as operational income for the purpose of computing deduction under Section 80HHC of the Income Tax Act, 1961. The High Court, by order dated 16/02/2010, admitted the appeal on this specific question.

What were the issues?

1. Whether on the facts and in the circumstances of the case, the ITAT is right in law in directing the Assessing Officer (AO) to consider receipts by way of income from barge hire, machinery hire, ore processing, transhipper loader charges, and miscellaneous income as operational income, thereby treating the same as eligible business profits for the purpose of computing the deduction under Section 80HHC of the Income Tax Act, 1961? Assessee's Contention: The judgment does not record any specific contentions made by the assessee. The ITAT's order, which is under challenge, had directed the AO to consider the said receipts as operational income for Section 80HHC deduction. Revenue's Contention: The judgment does not record any specific contentions made by the revenue. The appeal itself is filed by the revenue challenging the ITAT's order.

Which sections of the Income-tax Act were involved?

Section 80HHC,Section 260-A

AI-generated summary — verify with the full judgment below

Cause title — parties, addresses and appearances
1 TXA No.3 of 2010 IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO.3 OF 2010 The Commissioner of Income Tax, Having office at Aayakar Bhavan, Patto-Plaza, Panaji-Goa. …. Appellant V/s M/s. Chowgule & Company Ltd., Having office at Chowgule House, Marmugao-Harbour, Marmugao, Goa. …. Respondent Ms. Asha Desai, Advocate for the Appellant. Mr. Mihir Naniwadekar with Ms. Vinita Palyekar, Advocate for the Respondent. Coram:- MOHIT S. SHAH, C.J. & SMT. ANUJA PRABHUDESSAI, J. Date:- 20th August, 2015

ORAL JUDGMENT : (Per Mohit S. Shah, C.J.) This is an appeal under Section 260-A of the Income Tax Act, 1961 challenging the order dated 8/04/2009 of the Income Tax Appellate Tribunal, Panaji Bench. The relevant Assessment Year is 2004-05. 2. By order dated 16/02/2010, the appeal was admitted on the following substantial question of law: A) Whether on the facts and in the circumstances of the case, the ITAT is right in law in directing the AO to consider receipts by way of income from barge hire, machinery hire, ore processing, transhipper loader charges, and miscellaneous income as 2 TXA No.3 of 2010 operational income treating the same as eligible business profits for the purpose of computing the deduction u/s 80 HHC of the Act?

3.

By a separate judgment delivered today in Tax Appeals No.6 and 7 of 2008 of this very Assessee, we have remanded the matter to the Assessing Officer to consider the above question in the light of the judgment dated 7/05/2015 of this Court in Sesa Goa Ltd. V/s. The Commissioner of Income Tax in Tax Appeal No.53/2006. Following the said judgment, we remand this matter also to the Assessing Officer for deciding the question in the light of the aforesaid judgment of this Court. Tax Appeal accordingly stands disposed of. SMT. ANUJA PRABHUDESSAI, J. MOHIT S. SHAH, C.J. NH/-

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