2011 (5) TMI 1093 - HC - Income Tax

High Court Upholds Income Tax Appeal Dismissal on Interest, Expenditure, and Deduction Issues

The Punjab and Haryana High Court dismissed the appeal filed under section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate ... - Issues involved: Appeal u/s 260A of the Income Tax Act, 1961 against the order passed by the Income Tax Appellate Tribunal, Amritsar Bench Amritsar, involving substantial questions of law related to sections 234B, 57(iii), 80HHC, 80IA, and 80IB.Section 234B - Interest Levy: The first issue raised was whether the levy of interest u/s 234B is mandatory in cases of conflict of decision despite the admitted payment of liability. The counsel for the assessee did not press Question 'B', and it was noted that questions 'A' and 'C' were already decided against the assessee in earlier court orders. Consequently, the appeal was dismissed based on the previous rulings.Section 57(iii) - Claim of Expenditure: The second issue pertained to the interpretation of section 57(iii) regarding the claim of expenditure for earning interest under the head Income from other sources while calculating chargeable income. However, this question was not pressed by the counsel for the assessee during the proceedings.Sections 80HHC, 80IA, and 80IB - Deduction Restriction: The final issue revolved around the interpretation of sections 80HHC, 80IA (9), and 80IB (13), questioning the Tribunal's decision to restrict the claim of deduction under the Act. The court noted that similar issues had been addressed in previous court orders, which were unfavorable to the assessee, leading to the dismissal of the appeal.This judgment by the Punjab and Haryana High Court dismissed the appeal filed u/s 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal. The decision was based on the assessment of substantial questions of law related to interest levy u/s 234B, claim of expenditure u/s 57(iii), and deduction restriction u/s 80HHC, 80IA, and 80IB. The court referenced earlier rulings that were unfavorable to the assessee, resulting in the dismissal of the appeal.