PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S H.M. CEMENTS LIMITED

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ITA/203/2017HC GauhatiGAHC01007229201707 May 20171 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal, in view of the submission made by the learned standing counsel for the Income Tax Department and having regard to the ratio laid down in Commissioner of Income Tax vs. Meghalaya Steels Ltd. (Supra), ordered the dismissal of the appeal. The reasoning was that the Supreme Court had already decided the issue concerning transport subsidy in favour of the assessee. The ratio decidendi is that if a higher court has authoritatively decided an issue, subsequent appeals on the same issue should be dismissed without further adjudication. The operative direction was the dismissal of the appeal.

What were the facts?

The Income Tax Appellate Tribunal (ITAT) heard an appeal filed by the Principal Commissioner of Income Tax, Shillong, against an order concerning the claim of income tax exemption for transport subsidy received by the assessee. The departmental authorities had previously held that the assessee was entitled to exemption under Section 80-IB and 80-IC of the Income Tax Act. The appeal was filed under Section 260(A) of the Income Tax Act. The matter was listed for admission, and the Revenue's counsel appeared, while no one appeared for the respondent (assessee).

What were the issues?

1. Whether the assessee is entitled to exemption from tax on the transport subsidy amount received, under Section 80-IB and 80-IC of the Income Tax Act. Contentions: Assessee: Not recorded. Revenue: The Revenue, through its learned Senior Standing Counsel, submitted that the issue regarding the deduction of tax on account of transport subsidy has been finally decided by the Supreme Court in the case of Commissioner of Income Tax vs. Meghalaya Steels Ltd. reported in (2016) 383 ITR 0217 (SC) in favour of the assessee. Therefore, the Revenue contended that adjudication of the present appeal is unnecessary and it should be dismissed in light of the Supreme Court's judgment.

Which sections of the Income-tax Act were involved?

Section 80-IB,Section 80-IC,Section 260(A)

AI-generated summary — verify with the full judgment below

ITA 203/2017 BEFORE HON’BLE THE CHIEF JUSTICE MR. AJIT SINGH HON’BLE MR. JUSTICE MANOJIT BHUYAN (Ajit Singh, CJ)

Mr. S Saikia, learned Senior Standing Counsel, Income Tax Department ass isted by Mr. DK Bagchi, learned counsel for the appellant.

None for the respondent.

Heard on admission.

This Appeal relates to the claim of income tax exemption for the transpo rt subsidy amount received by the assessee. The departmental authorities declare d that the assessee is entitled to exemption to tax under Section 80-IB and 80-I ), we order dismissal of the Appeal.

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