THE COMMISSIONER OF INCOME vs. INDIAN BANK

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TCA/503/2016HC Madras20 October 2021Bench: Hon`ble Mrs Justice PUSHPA SATHYANARAYANA4 pages
AI SummaryRemanded

What did the High Court hold?

The High Court noted that the appeals before it arose from orders passed in Miscellaneous Petitions filed by the Revenue. The core issue was the applicability of Section 115JB(2) of the Income Tax Act, 1961, in light of the amendment brought by the Finance Act, 2012. The Tribunal had dismissed the Revenue's applications, holding that the amendment was prospective from Assessment Year 2013-14 and not applicable to earlier years. The High Court observed that the main appeals had also been disposed of and that appeals against those main appeals were ripe for hearing. Therefore, the Court granted liberty to the appellant/Revenue to agitate the issue concerning the applicability of Section 115JB(2) when the main appeals are taken up for hearing. With this liberty granted, the Tax Case Appeals were disposed of.

What were the facts?

The Revenue (Commissioner of Income Tax, Chennai) filed these Tax Case Appeals (T.C.A.Nos. 503 to 506 of 2016) against orders passed by the Income Tax Appellate Tribunal (ITAT) in Miscellaneous Petitions. These petitions were filed by the Revenue to seek amendment of the ITAT's orders in I.T.A.Nos. 470 to 472/Mds/2010 and I.T.A.No.08/Mds/2007, which pertained to Assessment Years 2004-05, 2005-06, 2006-07, and 2003-04 respectively. The basis for the amendment sought was an amendment to Section 115JB(2) of the Income Tax Act, 1961, introduced by the Finance Act, 2012. The ITAT had dismissed the Revenue's miscellaneous petitions.

What were the issues?

1. Whether the amendment to Section 115JB(2) of the Income Tax Act, 1961, introduced by the Finance Act, 2012, has retrospective or prospective application for the Assessment Years 2003-04 to 2006-07? Assessee's Contention (Implicit in ITAT's dismissal of MP): The ITAT rightly applied the law as it stood at the relevant time and dismissed the Revenue's applications for amendment, as the amendment to Section 115JB(2) was prospective from Assessment Year 2013-14. Revenue's Contention: The Revenue sought to amend the ITAT's orders to give effect to the amendment in Section 115JB(2) of the Income Tax Act, 1961, as introduced by the Finance Act, 2012. The Revenue's applications were dismissed by the Tribunal.

Which sections of the Income-tax Act were involved?

Section 115JB(2),Section 260-A

AI-generated summary — verify with the full judgment below

T.C.A.Nos.503 to 506 of 2016 IN THE HIGH COURT OF JUDICATURE AT MADRAS DATED: 20.10.2021 CORAM THE HONOURABLE MRS.JUSTICE PUSHPA SATHYANARAYANA and THE HONOURABLE MR.JUSTICE KRISHNAN RAMASAMY T.C.A.Nos.503 to 506 of 2016 The Commissioner of Income Tax, Chennai.

.. Appellant in all T.C.As. vs. M/s.Indian Bank, 254-260 Avvai Shanmugam Salai, Chennai – 600 014. .. Respondent in all T.C.As. Common Prayer: Tax Case Appeals filed under Section 260-A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal made in M.P.Nos.137, 138, 139 & 140/Mds/2012 in I.T.A.Nos.470 to 472/Mds/2010 & I.T.A.No.08/Mds/2007 relating to the Assessment year 2004-05, 2005-06, 2006-07 & 2003-04, respectively. For Appellant : Mr.Karthik Ranganathan in all T.C.As. For Respondent : Mr.G.Baskar in all T.C.As. 1/4 T.C.A.Nos.503 to 506 of 2016 COMMON JUDGMENT (delivered by PUSHPA SATHYANARAYANA, J.) These appeals are directed against the order passed by the Income Tax Appellate Tribunal 'D' Bench, Chennai in M.P.Nos.137, 138, 139 & 140/Mds/2012 in I.T.A.Nos.470 to 472/Mds/2010 and I.T.A.No.08/Mds/2007 relating to the Assessment year 2004-05, 2005- 06, 2006-07 & 2003-04, respectively. 2. The Revenue had filed those Miscellaneous Petitions to consider the amendment in Section 115JB(2) of the Income Tax Act, 1961, which was brought into statute by the Finance Act, 2012. The said applications were dismissed by the Tribunal stating that the amendment, which was introduced in Section 115JB of the said Act, has the effect only prospectively from the Assessment Year 2013-14 and not earlier and the Tribunal had rightly applied the law as on that date and dismissed the applications. 3. It is now stated by the appellant/Revenue that the main I.T.As. were also disposed of and the appeals against the same preferred by the Revenue in T.C.A.Nos.323, 324, 325 & 327 of 2016 are also ripe for hearing. 2/4 T.C.A.Nos.503 to 506 of 2016 4. As these appeals are arising out of the orders passed in the Miscellaneous Petitions and the question involved is the applicability of Section 115JB(2) of Income Tax Act, 1961, we are of the view that the appellant/Revenue may be given liberty to agitate this issue when the main appeals are taken up for hearing. 5. With the said liberty, these Tax Case Appeals are disposed of. No costs. [P.S.N., J.] [K.R., J.] 20.10.2021 rsi To 1.The Commissioner of Income Tax, Chennai. 2.The Income Tax Appellate Tribunal 'D' Bench, Chennai. 3/4 T.C.A.Nos.503 to 506 of 2016 PUSHPA SATHYANARAYANA, J. and KRISHNAN RAMASAMY, J. rsi T.C.A.Nos.503 to 506 of 2016 20.10.2021 4/4

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