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IN THE HIGH COURT OF DELHI
Manmohan, Manmeet Pritam Singh Arora, JJ.
Principal Commissioner of Income Tax - Appellant
Versus
PNB Housing Finance Ltd. - Respondent
ITA 307 of 2022
Decided On : 06-09-2022
| Table of Content |
|---|
| 1. appeal filed against itat's order. (Para 1) |
| 2. appellant argues misapplication of tax provisions. (Para 2) |
| 3. court highlights importance of consistency in tax matters. (Para 3 , 4) |
| 4. court dismisses the appeal. (Para 5) |
JUDGMENT
Manmohan, J. (Oral)
1. Present income tax appeal has been filed challenging the order dated 14th October, 2021 passed in ITA No.6352/Del./2018 for the Assessment Year 2015-16.
2. Learned counsel for the Appellant states that the ITAT has erred in deleting the disallowance made under Section 36(l)(viii) of the Income Tax Act, 1961 (`the Act') by not considering the total receipt of business for the purpose of working out proportion to be used for calculating the ratio for deduction under Section 36(1 )(viii) of the Act. He further states that the ITAT has failed to appreciate that total business receipts and not any specific sector receipts is the relevant factor for arriving at the quantum of disallowance under Section 36(l)(viii) of the Act.
3. A perusal of the paper book reveals that that ITAT has in the impugned order relied upon the CIT(A) order in assessee's own case for the Assessment Years 1998-99 to 2012-13.
4. In response to a pointed query, learned counsel for the Appellant states that appeal for the Assessment Years 2010-11 and 2014-15 is pending and listed today. However, no appeal status could be found for other previous years. The Supreme Court in Principal Commissioner of Income Tax, New Delhi vs. Maruti Suzuki India Ltd., [2019] 107 taxmann.com 375 (SC) has held that Courts must promote the interest of certainty in tax litigation. According to the Apex Court, there is a significant value which must attach to observing the requirement of consistency and certainty. It further held that individual affairs are conducted and business decisions are made in the expectation of consistency, uniformity and certainty and to detract from those principles is neither expedient nor desirable.
5. Keeping in view the aforesaid, this Court is of the view that no substantial question of law arises for consideration in the present appeal. Accordingly, the same is dismissed.
The court affirmed the importance of total business receipts over specific sector receipts for tax deductions, emphasizing certainty and consistency in tax decisions.
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The absence of incriminating material does not preclude assessment under Section 153A, as established by existing judicial precedents.
The court upheld the ITAT's decision that the assessment order was not erroneous or prejudicial as necessary inquiries were conducted, reaffirming the limits of appellate jurisdiction under income ta....
Concurrent findings of fact by lower authorities cannot be disturbed unless shown to be perverse or unsupported by evidence, reaffirming the limitation on appellate review in tax matters.
The court emphasized that any interference with the finding of the fact is not warranted if it involves re-appreciation of evidence.
The jurisdiction of the High Court is limited to substantial questions of law, and concurrent findings of fact by lower courts generally cannot be re-evaluated.
The withdrawal of a prior appeal concerning an addition does not preclude an assessee from challenging the same addition on merits in a subsequent assessment, as the tax authority is under a statutor....
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