Commissioner of Income Tax II vs. M/s. Seven Seas Aqua Farms AND Exports Ltd
What did the High Court hold?
The High Court, referencing a previous decision concerning the same assessee, held that the Tribunal had rightly appreciated the issue and allowed the assessee's appeal. The issues were answered in favor of the assessee and against the Department.
What were the facts?
The appeals concerned demurrage/wharfage charges and whether they accrued to the assessee following a mercantile system of accounting. The High Court was considering a substantial question of law framed earlier.
What were the issues?
Whether demurrage/wharfage charges accrued to the assessee under the mercantile system of accounting, considering the import procedure and existing rights.
AI-generated summary — verify with the full judgment below
HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH AT JAIPUR D.B. Income Tax Appeal No. 52 / 2007 C I T ----Appellant Versus Raj Small Industries Corp ----Respondent D.B. Income Tax Appeal No. 66 / 2006 C I T ----Appellant Versus Raj Small Industries Corp ----Respondent D.B. Income Tax Appeal No. 71 / 2006 C I T ----Appellant Versus Raj Small Industries Corp ----Respondent D.B. Income Tax Appeal No. 97 / 2006 C I T ----Appellant Versus Raj Small Industries Corp ----Respondent D.B. Income Tax Appeal No. 232 / 2008 C I T ----Appellant Versus Raj Small Industries Corp
(2 of 3) [ITA-52/2007] ----Respondent D.B. Income Tax Appeal No. 396 / 2008 C I T ----Appellant Versus Raj Small Industries Corp ----Respondent _____________________________________________________ For Appellant(s) : Mr. K.D. Mathur for Mr. R.B. Mathur For Respondent(s) : Mr. T.C. Jain _____________________________________________________ HON'BLE MR. JUSTICE K.S. JHAVERI HON'BLE MR. JUSTICE VINIT KUMAR MATHUR Judgment 11/01/2017 1. By way of these appeals, the appellant has assailed the judgment and order of the tribunal whereby tribunal has dismissed the appeal of the department and partly allowed the cross objections. 2. This court while admitting the appeal on 24.1.2008 had framed the following substantial question of law:- “Whether on the proper appreciation of the provisions of the Customs Act, import procedure, etc. it could be that the demurrage/wharfage charges had not accrued to the assessee particularly when the assessee followed mercantile system of the accounting and there was existing right in favour of the assessee to receive the charges and the assessee accordingly billed for the same?” 3. However, counsel for the appellant submits that the issue came up before this court in respect of the same assessee in D.B. Income Tax Appeal No.35/2000 (CIT vs. Rajasthan Small
(3 of 3) [ITA-52/2007] Industries Corporation) decided 18.10.2016 on wherein it has been held as under:- “Taking into consideration the evidence on record, we are of the opinion that the Tribunal while considering the issue has rightly appreciated and has rightly allowed the appeal preferred by the assessee. Assessee was a Government Corporation and has shown the liability in spite of stay order granted by the Court and in our view, the view taken by the Tribunal is just and proper. The issues are required to be answered in favour of the assessee and against the Department.” 4. The issues are required to be answered in favour of the assessee and against the Department. 5. The appeals stand dismissed. A copy of this order be placed in each file. (VINIT KUMAR MATHUR)J. (K.S. JHAVERI)J. BM Gandhi81.
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