2017 (5) TMI 1656 - HC - Income Tax

Disallowance of deduction u/s 80-IC - job work got done outside the specified Area, i.e., Himachal Pradesh, and on the trading receipt from sale of unused papers - Held that - Tribunal while adjudicating the appeal relating to the Assessment Year 2010-11 had relied upon its earlier decision in the assessee s own case for the Assessment Years 2005-06 to 2009-10, holding that it squarely covered the issue in the present case and as a result, dismissed the appeal filed by the revenue. As submitted by the parties that the said order was subject matter of appeal before this Court wherein, this Court had remanded the matter to the Tribunal for fresh adjudication after affording an opportunity of hearing to the parties 2017 (4) TMI 1062 - PUNJAB & HARYANA HIGH COURT . Accordingly, the present appeal stands disposed of in the same terms.

Summary

Issues:
1. Appeal by revenue under Section 260A of the Income Tax Act, 1961 against Tribunal's order.
2. Disallowance of deduction under section 80-IC for job work done outside the specified area and trading receipt from sale of unused papers.

Analysis:
1. The High Court dealt with an appeal by the revenue against the Income Tax Appellate Tribunal's order for the assessment year 2010-11. The substantial question of law revolved around the disallowance of deduction under section 80-IC of the Income Tax Act, 1961. The Tribunal had upheld the CIT(A)'s decision to delete the disallowance made by the Assessing Officer. The Tribunal relied on its earlier decision in the assessee's case for the assessment years 2005-06 to 2009-10, leading to the dismissal of the revenue's appeal.

2. The parties' counsels highlighted that the Tribunal's decision for the current assessment year was based on its previous ruling in the assessee's case for the preceding years. This reliance on past judgments formed the basis for the Tribunal's decision in the present case. Moreover, the matter had been subject to appeal before the High Court in ITA No. 122 of 2013, where the Court remanded the case back to the Tribunal for fresh adjudication after granting an opportunity of hearing to the concerned parties.

3. Consequently, the High Court disposed of the present appeal in similar terms as the previous case, emphasizing the importance of consistent interpretation of the law and the need for a fair hearing in tax matters. The judgment underscores the significance of precedent and the legal process in resolving disputes related to income tax assessments and deductions under the applicable provisions of the Income Tax Act, 1961.