Income Tax Appeal No. 2145 of 2013. Case: The Commissioner of Income Tax 6 Vs Goodlas Nerolac Paints Ltd.. High Court of Bombay (India)

Case NumberIncome Tax Appeal No. 2145 of 2013
CounselFor Appellant: S.V. Bharucha, Adv. and For Respondents: A. Vissanji and S.J. Mehta i/b S.P. Mehta & Co.
JudgesM. S. Sanklecha and B. P. Colabawalla, JJ.
IssueIncome Tax Act, 1961 - Sections 14A, 260A
Judgement DateJanuary 19, 2016
CourtHigh Court of Bombay (India)

Judgment:

  1. This appeal under Section 260A of the Income Tax Act (the Act) challenges the order dated 12th January, 2016 passed by the Income Tax Appellate Tribunal (the Tribunal) for the Assessment Year 2003-04.

  2. The Revenue has raised the following three questions of law for our consideration:-

    (a) Whether on the facts and circumstances of the case and in law, the Tribunal was justified in directing the Assessing Officer to recompute the disallowance u/s. 14A on a reasonable basis after relying on the judgment of Hon'ble Bombay High Court in the case of Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT ((2010),328 ITR 81) (Bom) without appreciating the fact that the judgment of Bombay High Court has not been accepted by the Revenue and is challenged by filing an SLP in the Hon'ble Supreme Court?

    (b) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of Rs. 1,19,498/- incurred by the assessee on Kavesar Unit in total disregard to the proposition laid down by the Hon'ble Supreme Court in the case of Chhabda & Sons (L.M.) Vs. Commissioner of Income Tax, 65 ITR 638?

    (c) Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in deleting the disallowance of Rs. 1,27,678/- being depreciation in respect of assets of Kavesar without appreciating the fact that assessee has discontinued its pigment operation at Kavesar from 01.04.1999 and the assets in question were never put to use?

  3. This appeal was on board on 12th January, 2016. At that time, we passed an order indicating that question (a) according to the Revenue itself stands concluded against the Revenue as the Apex Court had dismissed the challenge of the Revenue to the decision of this Court in Godrej & Boyce Mfg. Co. Ltd. Vs. DCIT, 328 ITR 21 and the impugned order has merely followed the order of the jurisdictional High Court in Godrej & Boyce (Supra). Consequently question (a) as formulated does not give rise to any substantial question of law. Hence, in the face of the issue now being concluded according to the Revenue by the decision of the Apex Court, we enquired of Mrs. Bharucha the reason for pressing this appeal given the fact that the aggregate tax effect in the other questions viz. (a) and (b) are only Rs. 2.46 lakhs i.e. less than the minimum of Rs. 20 lakhs prescribed in Circular No. 21 of 2015 dated 10th December, 2015. She sought time to take instructions.

  4. So far as question Nos. (b) and (c) are concerned, we find that the impugned order of the Tribunal has merely followed its decisions rendered in the Respondent Assessee's case itself for the Assessment Year 2002-03 in ITA No. 3858/Mum/2006 to grant benefit to the Respondent Assessee. On the last occasion i.e. on 12th January, 2016 as the Memo of Appeal did not indicate any challenge to the earlier order of the Tribunal for Assessment Year 2002-03 nor any other reason justifying an appeal of the above two questions. Further, no affidavit to the above effect was also filed nor was Mrs. Bharucha, learned Counsel appearing for the Revenue briefed by Officers of the Revenue on the above issues, we had adjourned the appeal to today.

  5. We had in our order dated 12th January, 2016 expressed our displeasure of the manner in which this appeal and numerous other appeals are being prosecuted by the Revenue. This improper presentation of the case on the part of the Revenue seems to arise on account of non furnishing...

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