2018 (6) TMI 1849 - HC - Income Tax

Disallowance u/s 40(a)(ia) - ITAT deleted addition - HELD THAT - Tribunal allowed Assessee's appeal by following the order of its coordinate bench for the Assessment Year 2009-10 in respect of the same respondent - Assessee Revenue very fairly points out that being aggrieved by the above order of Tribunal the Revenue filed an appeal to this Court. The appeal 2017 (7) TMI 1235 - BOMBAY HIGH COURT This by following an earlier order of Division Bench of this Court in the matter of Commissioner of Income Tax -2 Vs. Health Indian TPA Services Pvt. Ltd 2015 (12) TMI 568 - BOMBAY HIGH COURT Revenue is not able to point out any distinguishing features in this case which would warrant taking a different view from that taken in Income Tax Appeal (supra). No substantial question of law arises.

Summary

Issues:
Challenge to order of Income Tax Appellate Tribunal under section 260 A of the Income Tax Act for Assessment Year 2010-11 regarding deletion of disallowance under section 40(a)(ia) of the Act.

Analysis:
The High Court considered an appeal challenging the order of the Income Tax Appellate Tribunal (Tribunal) related to the deletion of a disallowance under section 40(a)(ia) of the Income Tax Act for the Assessment Year 2010-11. The Tribunal's decision was based on a previous order concerning the same respondent for the Assessment Year 2009-10. The Revenue had previously filed an appeal to the High Court, which was dismissed by a Division Bench in 2017. The High Court noted that there were no distinguishing features in the current case to warrant a different view from the earlier decision. As a result, the High Court found that the question raised by the Revenue was already addressed in the previous judgment, and no substantial question of law arose. Therefore, the appeal was dismissed with no costs incurred.

This judgment highlights the importance of consistency in legal decisions and the principle of precedent in tax matters. The High Court's decision was based on the application of previous judgments and the lack of new arguments or evidence to support a different outcome. The case serves as a reminder of the significance of legal precedent in guiding judicial decisions and ensuring uniformity in the application of tax laws. The dismissal of the appeal emphasizes the court's adherence to established legal principles and the need for parties to present compelling reasons to depart from existing jurisprudence.