PCIT, DELHI-7 vs. M/S PNB HOUSING FINANCE LTD

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ITA/307/2022HC DelhiDLHC01033516202206 September 2022Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA2 pages
AI SummaryDismissed

What did the High Court hold?

The High Court dismissed the appeal, finding no substantial question of law. It relied on the Supreme Court's decision in Maruti Suzuki India Ltd. regarding the importance of consistency and certainty in tax litigation.

What were the facts?

The Revenue appealed against an ITAT order that deleted a disallowance made under Section 36(1)(viii) of the Income Tax Act. The Revenue argued that the ITAT erred in not considering total business receipts for calculating the deduction ratio.

What were the issues?

Whether total business receipts or specific sector receipts are relevant for calculating the deduction under Section 36(1)(viii) and the importance of consistency in tax litigation.

Which sections of the Income-tax Act were involved?

Section 36(1)(viii)

AI-generated summary — verify with the full judgment below

Cases cited in this judgment(1)Show list

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ITA No.307/2022 Page 1 of 2 $~24 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 307/2022 PCIT, DELHI-7 ..... Appellant Through: Mr.Puneet Rai, Sr.Standing Counsel for the Revenue. versus M/S PNB HOUSING FINANCE LTD ..... Respondent Through: % Date of Decision: 06th September, 2022 CORAM: HON'BLE MR. JUSTICE MANMOHAN HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J (Oral): 1. Present income tax appeal has been filed challenging the order dated 14th October, 2021 passed in ITA No.6352/Del./2018 for the Assessment Year 2015-16. 2. Learned counsel for the Appellant states that the ITAT has erred in deleting the disallowance made under Section 36(l)(viii) of the Income Tax Act, 1961 (‘the Act’) by not considering the total receipt of business for the purpose of working out proportion to be used for calculating the ratio for deduction under Section 36( 1 )(viii) of the Act. He further states that the ITAT has failed to appreciate that total business receipts and not any specific sector receipts is the relevant factor for arriving at the quantum of disallowance under Section 36(l)(viii) of the Act. This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/003506

ITA No.307/2022 Page 2 of 2 3. A perusal of the paper book reveals that that ITAT has in the impugned order relied upon the CIT(A) order in assessee’s own case for the Assessment Years 1998-99 to 2012-13. 4. In response to a pointed query, learned counsel for the Appellant states that appeal for the Assessment Years 2010-11 and 2014-15 is pending and listed today. However, no appeal status could be found for other previous years. The Supreme Court in Principal Commissioner of Income Tax, New Delhi vs. Maruti Suzuki India Ltd., [2019] 107 taxmann.com 375 (SC) has held that Courts must promote the interest of certainty in tax litigation. According to the Apex Court, there is a significant value which must attach to observing the requirement of consistency and certainty. It further held that individual affairs are conducted and business decisions are made in the expectation of consistency, uniformity and certainty and to detract from those principles is neither expedient nor desirable. 5. Keeping in view the aforesaid, this Court is of the view that no substantial question of law arises for consideration in the present appeal. Accordingly, the same is dismissed. MANMOHAN, J MANMEET PRITAM SINGH ARORA, J SEPTEMBER 06, 2022 KA This is a digitally signed Judgement. NEUTRAL CITATION NO: 2022/DHC/003506

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