COMMISSIONER OF INCOME TAX vs. SANCO TRANS

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TCA/492/2018HC Madras05 December 2019Bench: Hon`ble Mr Justice N. KIRUBAKARAN4 pages
AI SummaryDismissed

What did the High Court hold?

The High Court held that the present appeal is covered by the Division Bench judgment in The Commissioner of Income Tax, Chennai Vs. A.L.Logistics Pvt. Ltd. (2015) 374 ITR 609, which was also upheld by the Supreme Court through the dismissal of a Review Petition. Therefore, the substantial question of law raised by the Revenue was considered to have been already decided against them. The High Court found no reason to deviate from the established precedent. Consequently, the appeal filed by the Revenue was dismissed. No costs were awarded. The specific finding on the eligibility for deduction under Section 80IA for the assessment year 2012-2013 was not elaborated upon, as the appeal was disposed of based on the binding precedent.

What were the facts?

The Revenue, Commissioner of Income Tax, Chennai, filed an appeal against the order of the Income Tax Appellate Tribunal (ITAT), Madras 'C' Bench, dated 22.11.2016. The appeal pertained to assessment year 2012-2013. The assessee, M/s. Sanco Trans, had filed its return of income declaring a total income of Rs. 80,05,950/-. The Assessing Officer disallowed the assessee's claim for deduction under Section 80IA of the Income Tax Act, 1961. The Commissioner of Income Tax (Appeals) partly allowed the assessee's appeal. The ITAT confirmed the CIT(A)'s order, leading to the present appeal by the Revenue.

What were the issues?

1. Whether the assessee is eligible for deduction under Section 80IA of the Income Tax Act, 1961, for the assessment year 2012-2013? (Question of law) The Revenue contended that the substantial question of law raised in this case has already been answered against the Revenue by a Division Bench of the High Court in The Commissioner of Income Tax, Chennai Vs. A.L.Logistics Pvt. Ltd., reported in (2015) 374 ITR 609, and that a Review Petition against that judgment was dismissed by the Supreme Court. The Revenue implicitly argued that this precedent should be followed. The Assessee's contentions were not explicitly recorded in the judgment, but their appeal to the ITAT, which was confirmed, suggests they argued for the allowability of the Section 80IA deduction.

Which sections of the Income-tax Act were involved?

Section 80IA,Section 260A

AI-generated summary — verify with the full judgment below

T.C.A. No. 492 of 2018 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 05.12.2019 CORAM THE HONOURABLE MR.JUSTICE N. KIRUBAKARAN AND THE HONOURABLE MR. JUSTICE P. VELMURUGAN T.C.A. No. 492 of 2018 Commissioner of Income Tax, Chennai. ..Appellant Vs. M/s. Sanco Trans, New No. 46, Moore Street, Chennai – 600 001. ..Respondent Prayer: Appeal under Section 260A of Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench dated 22.11.2016 in ITA No. 2017/Mds/2016 for the assessment year 2012-2013. For Appellant :: Mr.T.R. Senthilkumar For Respondent :: Mr.Venkat Narayan for

M/s. Subbarayan Aiyar Padmanabhan 1/4 http://www.judis.nic.in T.C.A. No. 492 of 2018 J U D G M E N T (Judgment of the Court was delivered by N. KIRUBAKARAN,J.) The Appeal has been preferred by the Revenue against the order of the Income Tax Appellate Tribunal, Madras 'C' Bench dated 22.11.2016 in ITA No. 2017/Mds/2016. 2.The assessee company furnished its return of income for the assessment year 2012-2013 on 29.09.2012 declaring total income of Rs.80,05,950/-. The Assessing Officer completed the assessment on 27.01.2015 disallowing the assessee's claim for deduction under Section 80IA of the Income Tax Act, 1961. Aggrieved by the assessment order, the assessee filed an appeal to the Commissioner of Income Tax (Appeals) and by order dated 11.03.2016, the appeal was partly allowed. Aggrieved by the said order, Revenue filed an appeal to the Income Tax Appellate Tribunal, which confirmed the order passed by the CIT(A) thereby dismissing the appeal. Against the said order of the Appellate Tribunal only, the present appeal has been filed. 2/4 http://www.judis.nic.in T.C.A. No. 492 of 2018 3.When the matter is called today, Mr.T.R. Senthilkumar, learned Senior Standing Counsel appearing on behalf of the appellant would submit that the substantial question of law raised in this case has already been answered against the Revenue by the Division Bench of this Court in a similar case in The Commissioner of Income Tax, Chennai Vs. A.L.Logistics Pvt. Ltd., reported in (2015) 374 ITR 609 and the Review Petition filed against the above judgment was also dismissed by the Hon'ble Supreme Court. 4.Since the present Appeal is covered by the above judgment, the present Appeal is dismissed. No costs. (N.K.K.J.) (P.V.J.) nv 05.12.2019 To The Income Tax Appellate Tribunal, Madras “C” Bench. 3/4 http://www.judis.nic.in T.C.A. No. 492 of 2018 N. KIRUBAKARAN,J. AND P. VELMURUGAN,J. T.C.A.No. 492 of 2018 05.12.2019 4/4 http://www.judis.nic.in

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