2011 (2) TMI 1349 - HC - Income Tax

Summary

Issues:
1. Appeal seeking reference of substantial questions of law regarding job charges under Section 40A(2)(b).
2. Appeal seeking reference of substantial questions of law regarding disallowance of hire charges paid to Blue Blend Finance Limited.

Analysis:
1. The first issue revolves around the Appellate Tribunal reversing the order passed by the CIT [Appeals] and deleting job charges under Section 40A(2)(b). The Tribunal's decision was based on the previous year's decision, which the Revenue argued was not applicable due to different facts. However, the assessee claimed that the issue in both years arose from identical facts, with limited benefits claimed in the present year. The High Court found that while the Tribunal erred in referring to the previous year's order, the issue was common in both years, and the material was substantially similar. The CIT [A] and Tribunal had previously ruled in favor of the Assessee in the earlier year, and considering the totality of the facts, the High Court concluded that no substantial question of law arose, leading to the dismissal of the Tax Appeal.

2. The second issue pertains to the Appellate Tribunal reversing the order passed by the CIT [Appeals] and deleting the disallowance of hire charges paid to Blue Blend Finance Limited. The Revenue pointed out that the issue had been remanded to the Assessing Officer, and since the Tribunal's decision only resulted in a remand, the High Court saw no reason to interfere. Therefore, the High Court did not find any grounds to question the Tribunal's decision on this issue, leading to the dismissal of the Tax Appeal.

In summary, the High Court dismissed the Revenue's appeal seeking reference of substantial questions of law on both issues related to job charges under Section 40A(2)(b) and disallowance of hire charges paid to Blue Blend Finance Limited, based on detailed analysis and findings regarding the facts and previous rulings in the case.