2008 (8) TMI 1009 - HC - Income Tax

Summary

Issues involved:
The issues involved in the judgment are related to tax appeals filed under Section 260A of the Income Tax Act, 1961 for the assessment year 1998-99. The substantial questions of law for determination and consideration by the Court are as follows:

Question [A]:
The first issue pertains to whether the Appellate Tribunal was right in allowing deduction to the extent of actual payment to ONGC, despite the whole contractual liability being in dispute before the Hon'ble Supreme Court.

The Court admitted the Tax Appeal in terms of Question [A] only, as a similar question in Tax Appeal No. 391 of 2008 had already been dismissed.

Question [B]:
The second issue concerns whether the Appellate Tribunal was correct in allowing an inflated claim of depreciation on revalued assets without appreciating that such revaluation was made arbitrarily, as a colorable device to reduce book profit for the purpose of Section 115JA(2) and was not in conformity with the provisions of the Companies Act.

The Court dismissed Tax Appeal No. 391 of 2008, which involved a similar question to Question [B].

The Court directed for notice to be served to the other side and for any additional Paper-Book to be filed within three months from the date of the order. The case was scheduled to be heard along with other Tax Appeals.