High Court Upholds Income Tax Appeal Dismissal on Interest, Expenditure, and Deduction IssuesThe 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 Tribunal. The court upheld the decision based on substantial questions of law related to interest levy under section 234B, claim of expenditure under section 57(iii), and deduction restriction under sections 80HHC, 80IA, and 80IB. Previous unfavorable rulings on similar issues were referenced, leading to the dismissal of the appeal. 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. - Vishal Tools & Forgings Private Limited Versus Commissioner of Income Tax, Jalandhar (Punjab)
Income Tax
2011 (5) TMI 1093 - PUNJAB AND HARYANA HIGH COURT - TMI
PUNJAB AND HARYANA HIGH COURT - HC
Dated:- 20-5-2011
ITA No.121 of 2011 - -
Income Tax
-
Mr Adarsh Kumar Goel Mr. Ajay Kumar Mittal, JJ. Mr. Pankaj Jain, Advocate with Mr. D.K.Goyal, Advocate for the appellant. Adarsh Kumar Goel, This appeal has been preferred by the assessee under section 260A of the Income Tax Act, 1961 ('the Act') against the order passed by the Income Tax Appellate Tribunal, Amritsar Bench Amritsar dated 21.10.2009 in ITA No.156/Asr/2009, claiming following substantial questions of law:- "A) Whether on the true and correct interpretation of section 234B the levy of interest is mandatory where there is a conflict of decision and admitted that liability stands paid? B) Whether on the true and correct interpretation of section 57(iii) of the claim of expenditure for earning the interest is to be allowed under the head Income from other sources while computing the chargeable income? C) Whether on the true and correct interpretation of the provision of section 80HHC read with section 80IA (9) read with section 80IB (13) the Tribunal ahs erred in restricting the claim of deduction under the Act?" Learned counsel for the assessee states that he is not pressing Question 'B', while questions 'A' and 'C' are covered against the assessee by earlier orders of this Court dated 16.7.2010 in ITR No.2 of 1996, The Commissioner of Income Tax (Central) Ludhiana v. M/s Hero Cycles (P) Limited and dated 21.4.2011 in ITA No.371 of 2007, Commissioner of Income Tax (Central) Ludhiana v. M/s Davinder Exports. In view of above, this appeal is dismissed.
Case laws, Decisions, Judgements, Orders