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2013 (7) TMI 852 - HC - Income TaxCredit under Amnesty Scheme of 1985 - CIT rejected to grant credit - Held that - . It was not disputed that in the proceedings relating to assessment year 1982-83 wherein the assessee had claimed Amnesty scheme relating to assessment years 1976-77 and 1977-78 was available in its books of account. The said amount was also held to be available with the petitioner relating to the assessment year 1984-85 - Following decision of M/s Ghuna Ram and Sons, New Grain Market, Patiala v Commissioner of Income Tax, Patiala and another 2013 (7) TMI 734 - PUNJAB & HARYANA HIGH COURT - Decided in favour of assessee.
Issues:
Petitioner seeking writ of certiorari to set aside order of Commissioner of Income Tax under Section 264 of the Income Tax Act, 1961. Petitioner claiming entitlement to credit under Amnesty Scheme for the year 1983-84. Controversy regarding refusal of credit by Income Tax authorities. Reference to a previous judgment favoring a similar plea. Analysis: The petitioner approached the High Court seeking a writ of certiorari to challenge the order dated 27.03.1997 passed by the Commissioner of Income Tax, Patiala, under Section 264 of the Income Tax Act, 1961. The petitioner specifically asserted entitlement to a credit of Rs.4,20,000/- for the year 1983-84, surrendered under the Amnesty Scheme of 1985. The petitioner contended that the Income Tax authorities erred in denying this credit, highlighting a similar favorable judgment in a previous case. During the proceedings, the petitioner's counsel focused solely on the plea regarding the credit claim for the year 1983-84. The counsel argued that the Income Tax authorities had committed a jurisdictional error by refusing to grant the credit, which could be rectified. The counsel also referenced a previous judgment, M/s Ghuna Ram and Sons, where a similar controversy was resolved in favor of the petitioner. On the other hand, the revenue's counsel failed to provide substantial arguments to distinguish the previous judgment or support the Commissioner's order under Section 264 of the Income Tax Act. After hearing both parties and examining the relevant documents, the High Court, comprising Rajive Bhalla and Dr. Bharat Bhushan Parsoon, concluded that the Commissioner of Income Tax, Patiala, was unjustified in rejecting the petitioner's claim for credit. The Court found that the controversy raised in the present petition was decisively settled in favor of the petitioner by the judgment in M/s Ghuna Ram and Sons. The Court specifically quoted a relevant extract from the previous judgment, highlighting the inconsistency in the Commissioner's decision and the need for a fresh order in line with the law. Consequently, the High Court partially allowed the writ petition, modifying the impugned order to acknowledge the petitioner's entitlement to credit of Rs.4,20,000/- for the year 1983-84. The Court remanded the matter back to the Commissioner of Income Tax for the issuance of a fresh order in compliance with the legal principles outlined in the judgment.
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