PRINCIPAL COMMISSIONER OF INCOME TAX vs. M/S SILVER DROP FOOD and BEVERAGES P LTD

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ITA/191/2017HC GauhatiGAHC01018632201707 May 20171 pages
AI SummaryDismissed

What did the High Court hold?

The Tribunal noted the submission by the learned standing counsel for the Income Tax Department regarding the Supreme Court's judgment in Commissioner of Income Tax vs. Meghalaya Steels Ltd. (Supra). This judgment, according to the Revenue's counsel, finally decided the issue concerning the taxability of transport subsidy in favour of the assessee. In light of this submission and the ratio laid down in the Supreme Court's decision, the Tribunal ordered the dismissal of the appeal. The specific finding on the entitlement to exemption under Section 80-IB and 80-IC was not independently adjudicated by the ITAT, but rather the appeal was dismissed based on the precedent set by the Supreme Court.

What were the facts?

The appeal was filed by the Principal Commissioner of Income Tax, Guwahati-2, against an order concerning the claim of income tax exemption for transport subsidy received by the assessee. The departmental authorities had previously ruled 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 260A of the Income Tax Act. The case 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. The Revenue contended that the issue regarding the deduction of tax on account of transport subsidy has been finally decided by the Supreme Court in favour of the assessee in the case of Commissioner of Income Tax vs. Meghalaya Steels Ltd. reported in (2016) 383 ITR 0217 (SC). Therefore, the Revenue argued that adjudication of this appeal is unnecessary and that the appeal should be dismissed.

Which sections of the Income-tax Act were involved?

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

AI-generated summary — verify with the full judgment below

ITA 191/2017 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 C of the Income Tax Act and that is how, the Principal Commissioner of Income Ta x, Guwahati-2, Guwahati has filed this Appeal, under Section 260(A) of the Incom ), we order dismissal of the Appeal.

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