Case Note & Summary
The Revenue filed an appeal under Section 260A of the Income Tax Act, 1961 against the order of the Income Tax Appellate Tribunal (ITAT) dated 27.11.2015 in ITA No.449/BANG/2014 for the assessment year 2009-2010. The ITAT had set aside the addition of Rs.5,89,49,503/- made by the Assessing Officer on account of transport creditors, thereby relieving the assessee of tax liability to that extent. The Revenue framed a substantial question of law as to whether the Tribunal was justified in setting aside the disallowance. The High Court, after hearing the parties, found that the Tribunal's decision was based on proper appreciation of evidence and was not perverse. Consequently, the court held that no substantial question of law arose and dismissed the appeal.
Headnote
A) Income Tax - Substantial Question of Law - Section 260A Income Tax Act, 1961 - Appeal against ITAT order - Revenue challenged deletion of addition on account of transport creditors - Court held that no substantial question of law arises as Tribunal's findings were based on appreciation of evidence and not perverse - Appeal dismissed (Paras 1-3).
Issue of Consideration
Whether the Income Tax Appellate Tribunal was justified in law in setting aside the disallowance of Rs.5,89,49,503/- claimed as Transport Creditors.
Final Decision
Appeal dismissed. No substantial question of law arises. The order of the ITAT is upheld.
Law Points
- Substantial question of law
- Section 260A
- Income Tax Act 1961
- Transport creditors
- Addition set aside
- Tribunal's findings
- No perversity
Case Details
2022 LawText (KAR) (07) 16
Income Tax Appeal No. 383 of 2016
Krishna S. Dixit, P. Krishna Bhat
Sanmathi E.I. & Y.V.Raviraj (for appellants), Mayank Jain (for respondent)
Pr. Commissioner of Income Tax, Central BMTC Complex, Kormangala, Bangalore & The Deputy Commissioner of Income Tax, Circle-1(3), Bangalore
M/s Ennoble Construction, No.6/4, Ennoble House, Raghavachari Road, Belary-583101
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Nature of Litigation
Appeal by Revenue under Section 260A of Income Tax Act, 1961 against ITAT order deleting addition on transport creditors.
Remedy Sought
Revenue sought to challenge the ITAT order and restore the addition made by the Assessing Officer.
Filing Reason
Revenue aggrieved by ITAT order setting aside disallowance of Rs.5,89,49,503/- claimed as transport creditors.
Previous Decisions
Assessment Officer made addition of Rs.5,89,49,503/- on account of transport creditors; ITAT set aside the addition.
Issues
Whether the Tribunal was justified in setting aside the disallowance of Rs.5,89,49,503/- claimed as Transport Creditors.
Submissions/Arguments
Revenue argued that the Tribunal erred in deleting the addition.
Assessee supported the Tribunal's order.
Ratio Decidendi
The Tribunal's findings were based on appreciation of evidence and not perverse; hence no substantial question of law arises under Section 260A of the Income Tax Act, 1961.
Judgment Excerpts
This appeal by the Revenue seeks to lay a challenge to the order dated 27.11.2015 made by the Income Tax Appellate Tribunal, 'B' Bench, Bangalore (hereinafter 'ITAT'), whereby the statutory appeal of the Assessee in ITA No.449/BANG/2014 having been favoured the addition made by the Assessment Officer on account of transport creditors, is set at naught, and to that extent the Assessee has been relieved of tax liability.
Procedural History
Assessment order for AY 2009-2010 made addition of Rs.5,89,49,503/- on account of transport creditors. Assessee appealed to ITAT which set aside the addition. Revenue filed appeal under Section 260A before High Court.
Acts & Sections
- Income Tax Act, 1961: 260A
