COMMISSIONER OF INCOME TAX vs. M/S WILLIAMSON TEA ASSAM LTD.

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ITA/10/2011HC GauhatiGAHC01001816201117 July 20111 pages
AI SummaryAllowed

What did the High Court hold?

The High Court held that the substantial question of law is answered in favour of the Revenue. The Court relied on the Apex Court's judgment in COMMISSIONER OF INCOME TAX Versus WILLIAMSON FINANCIAL SERVICES AND OTHERS (2008) 2 SCC 202. The reasoning is that the deduction under Section 80HHC of the Income Tax Act, 1961, is to be allowed after the apportionment of income under Rule 8(1) of the Income Tax Rules, 1962. The ratio decidendi is that statutory deductions like Section 80HHC are to be applied after the initial apportionment of income as per Rule 8(1). The operative direction is that the appeal stands allowed, implying the ITAT's order directing deduction before apportionment is set aside. No costs were awarded. No issue was expressly left undecided.

What were the facts?

The appeal before the Tribunal concerns the assessment year(s) not explicitly stated. The Revenue is the appellant, and the respondent is the assessee. The order under challenge is a decision by the Income Tax Appellate Tribunal (ITAT). The dispute revolves around the deduction allowable under Section 80HHC of the Income Tax Act, 1961. The procedural history indicates that the Revenue has appealed the ITAT's decision to the High Court.

What were the issues?

The substantial question of law before the High Court is: Whether on the facts and in the circumstances of the case, the Tribunal was justified and correct in law in directing the Assessing Officer to allow deduction U/S 80HHC of the Income Tax Act, 1961 from the composite income of the assessee before application of Rule 8 of the Income Tax Rules, 1962? Contentions: Assessee: The judgment records no specific contentions from the assessee's counsel, Ms. N. Hawelia, regarding this issue. It is stated that the state of law in terms of the Apex Court judgment has not been disputed on behalf of the respondent. Revenue: Mr. U. Bhuyan, learned counsel for the Revenue, submitted that the question has been authoritatively answered by the Apex Court in COMMISSIONER OF INCOME TAX Versus WILLIAMSON FINANCIAL SERVICES AND OTHERS (2008) 2 SCC 202.

Which sections of the Income-tax Act were involved?

Section 80HHC

AI-generated summary — verify with the full judgment below

ITA 10/2011 BEFORE THE HON’BLE MR. JUSTICE AMITAVA ROY THE HON’BLE MR. JUSTICE B.D. AGARWAL Amitava Roy, J Heard Mr. U. Bhuyan, learned counsel for the Revenue and Ms. N. Hawelia, learned counsel for the respondent. The substantial question of law which needs to be answered in the present appeal is hereunder: Whether on the facts and in the circumstances of the case, the tribunal was jus tified and correct in law in directing the Assessing Officer to allow deduction U/S 80HHC of the Income Tax Act, 1961 from the composite income of the assessee before application of Rule 8 of the Income Tax Rules, 1962 ?  Mr. Bhuyan has submitted that this question has since been answered authoritativ ely by the Apex Court in COMMISSIONER OF INCOME TAX Versus WILLAMSON FINANCIAOL SERVICES AND OTHERS (2008) 2 SCC 202. The state of law in terms of the aforemen tioned judgment of the Apex Court has not been disputed on behalf of the respond ent. In the above view of the matter, in terms of the judgment and order rendered in Commissioner of Income Tax -Vs- Willamson Financial Services and Others (Supra), the afore quoted question of law is answered in favour of the Revenue by elucid ating that the deduction U/s.80-HHC under the Income Tax Act, 1961 is to be allo wed after the apportionment of income under Rule 8(1) of the Income Tax Rules, 1

962.

In view of the premise in which this order disposing of the appeal has been pass ed, there is no necessity of dilating on the factual details. The appeal stands allowed. No costs.

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