2019 (1) TMI 1518 - AT - Income Tax

Deduction u/s. 36(1)(viia) - repetitive appeals - Held that - In view of the fact that similar issue has been decided earlier against the assessee by the Tribunal, respectfully following the precedent, we uphold the impugned orders in restricting the claim of deduction u/s.36(1)(viia) to the extent of provision in the books of account. Chapter XIV-A of the Income-tax Act deals with the provision for avoiding repetitive appeals. It has only one section 158A which contains a procedure when assessee claims that identical question of law is pending before High Court or Supreme Court. In the instant case the assessee wants to keep the matter alive till the decision of the Hon ble High Court on the said issue. We, therefore, admit, in terms of sec. 158A(3), that the question of law arising in the instant appeal, is identical with the question of law stated to be pending before the Hon ble High Court. Resultantly the appeals of the assessee are dismissed as per sec. 158A(4). It is, however, made clear that when this issue is decided by the Hon ble High Court, amendment, if necessary, shall be made as per the mandate of sec. 158A(5). - Decided against assessee.

Summary

Issues:
- Appeal by assessee for assessment years 2012-13 and 2013-14 regarding deduction u/s. 36(1)(viia)
- Interpretation of Chapter XIV-A of the Income-tax Act

Analysis:
1. The appeals by the assessee were related to the deduction u/s. 36(1)(viia) for the assessment years 2012-13 and 2013-14. The main issue raised by the assessee was against the restriction of the deduction to the extent of the provision in the books of account.
2. The assessee's representative argued that a similar issue had been decided against the assessee by the Tribunal in previous years, and the High Court had admitted the assessee's ground against the Tribunal's order on this issue. A request was made to keep the issue alive pending the High Court's decision.
3. The Tribunal, considering the precedent where a similar issue had been decided against the assessee, upheld the impugned orders restricting the claim of deduction u/s. 36(1)(viia) to the extent of the provision in the books of account.
4. The Tribunal referred to Chapter XIV-A of the Income-tax Act, which deals with avoiding repetitive appeals and contains only one section, 158A. The Tribunal admitted that the question of law in the instant appeal was identical to the one pending before the High Court. Consequently, the appeals of the assessee were dismissed in accordance with sec. 158A(4), with the provision to make necessary amendments as per sec. 158A(5) after the High Court's decision.
5. Ultimately, the Tribunal dismissed the appeals of the assessee, pronouncing the order in the Open Court on 29th October 2018.