2014 (11) TMI 887 - HC - Income Tax

Interest on investment in shares deleted - Notional interest attributable to investment in shares - Whether the Tribunal was right in confirming the order passed by the CIT(A) deleting the interest attributable to investment in shares Held that - Following the decision in ACIT Versus EMTICI ENGG. LTD. 2014 (11) TMI 858 - GUJARAT HIGH COURT the Tribunal was justified in granting benefit of the earlier years orders to the assessee, which are final - the issue involved was never carried in appeal before the Court and therefore, the earlier years orders, on which the Appellate Tribunal placed reliance, had become final Decided against revenue.

Summary

Issues involved:
1. Common questions of law in Tax Appeals u/s.260A of the Income Tax Act, 1961 challenging a judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench.

Analysis:

Issue 1:
The appeals involved common questions of law challenging the judgment and order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench. The assesse-company had three divisions, including a trading division, Kanisha Steel division, and Trupti Castings division. The company held substantial investments in shares of various companies. The appeals arose from the order passed by the Assessing Officer under section 143(3) of the Income Tax Act, 1961, and subsequent appeals before the CIT(A) and the Income Tax Appellate Tribunal. The Tribunal partly allowed the assessee's appeal and dismissed the Revenue's appeal, leading to the present appeals.

Issue 2:
The substantial question of law formulated for consideration was whether the Appellate Tribunal was correct in confirming the order passed by the CIT(A) deleting the interest attributable to the investment in shares. The High Court noted that the issue was already decided in a previous Tax Appeal, where the Tribunal dismissed the appeal. The High Court referred to the earlier decision where the Appellate Tribunal had granted benefit to the assessee based on previous years' orders, which were final. The High Court concurred with the view taken by the Appellate Tribunal and dismissed the appeal, as the issue was not carried in appeal before the Court.

In conclusion, the High Court upheld the decision of the Appellate Tribunal based on the previous years' orders and dismissed the appeals. The judgment provided a detailed analysis of the facts, legal arguments, and precedents involved in the case, ultimately affirming the Tribunal's decision.