2014 (7) TMI 9 - HC - Income Tax

Disallowance u/s 43B - CIT(A) cancelled the order u/s 154 Held that - while confirming the order of CIT(A), tribunal has heavily relied upon its earlier order passed with respect to the AY 1989-90 - against the order, granting similar benefits, the Revenue has not carried the matter further and the order passed by the Tribunal for the AY 1989-90 has attained finality Decided against Revenue.

Summary

Issues:
1. Appeal against the impugned judgment and order passed by the ITAT for Assessment Year 1992-93.
2. Disallowance under Section 43-B of the Act.
3. Reliance on earlier order for Assessment Year 1989-90.
4. Finality of order for Assessment Year 1989-90.
5. Decision on the Tax Appeals.

Analysis:

1. The High Court heard two appeals together concerning the impugned judgment and order passed by the Income Tax Appellate Tribunal (ITAT) for the Assessment Year 1992-93. The Revenue filed Tax Appeal No. 438 of 2000 questioning the confirmation of the order passed by the Commissioner of Income Tax (Appeals) canceling the Assessing Officer's order under Section 154, disallowing an amount of Rs. 33,72,684 under Section 43-B of the Act. Additionally, the Revenue filed Tax Appeal No. 456 of 2000 on similar grounds, challenging the disallowance of Rs. 30,31,338 under Section 43-B of the Act.

2. The Court considered arguments from both sides, represented by Mr. K.M. Parikh for the Revenue and Ms. Gargi Vyas for the Respondent-Assessee. The Tribunal's reliance on its earlier order for the Assessment Year 1989-90 was noted. It was highlighted that the Revenue did not contest the similar benefits granted in the order for the Assessment Year 1989-90, which has now attained finality.

3. Given the above circumstances, the Court ruled in favor of the assessee and against the Revenue on the questions of law raised in the Tax Appeals. Consequently, both Tax Appeals were dismissed, affirming the decisions made by the ITAT and the Commissioner of Income Tax (Appeals) regarding the disallowances under Section 43-B of the Act for the respective years.

This detailed analysis of the judgment provides a comprehensive overview of the issues involved and the Court's decision on each matter, ensuring a thorough understanding of the legal proceedings and outcomes.