The Commissioner of Income-tax – I Hyderabad v. Future Tech. Industries Limited
[Citation -2014-LL-1126-124]

Citation 2014-LL-1126-124
Appellant Name The Commissioner of Income-tax – I Hyderabad
Respondent Name Future Tech. Industries Limited
Court HIGH COURT OF HYDERABAD FOR THE STATE OF TELANGANA AND THE STATE OF ANDHRA PRADESH
Relevant Act Income-tax
Date of Order 26/11/2014
Assessment Year 2008-09
Judgment View Judgment
Keyword Tags erroneous and prejudicial • question of law
Bot Summary: Whether, on the facts and circumstances of the case and in law, the Income Tax Appellate Tribunal is correct in cancelling the order of the CIT passed under Section 263 of the Income Tax Act, without appreciating that the assessing officer has failed to examine the allowability of finance charges and hence, the assessment order is erroneous and prejudicial to the interests of the Revenue We have heard Sri J.V. Prasad, learned counsel for the appellant - Revenue and gone through the impugned judgment and order of the learned Tribunal. The Tribunal has set aside the order of the learned Commissioner of Income Tax, passed under Section 263 of the Income Tax Act, 1961. It found that the pre-conditions for invocation of provisions of Section 263 of the Act are not satisfied. These pre- conditions that inheres in the aforesaid Section have been explained by the Supreme Court in Malabar Industries Company Ltd. v. 1 Commissioner of Income Tax observing that the Commissioner of Income Tax has to be satisfied that the order of the Assessing Officer sought to be revised is erroneous; and it is prejudicial to the interests of the Revenue. The learned Tribunal therefore correctly set aside the order of the Commissioner of Income Tax. In the circumstances, no question of law is involved for a decision by us in this appeal.


HIGH COURT OF JUDICATURE AT HYDERABAD FOR STATE OF TELANGANA AND STATE OF ANDHRA PRADESH PRESENT HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.672 OF 2014 DATED:26.11.2014 Between: Commissioner of Income Tax I Hyderabad Appellant And M/s. Future Tech. Industries Limited Sy. No.308, Plot No.1B/2 Sri Venkateswara Cooperative Industrial Estate Jeedimetla, Hyderabad Respondent HON BLE CHIEF JUSTICE SRI KALYAN JYOTI SENGUPTA AND HON BLE SRI JUSTICE SANJAY KUMAR I.T.T.A. NO.672 OF 2014 JUDGMENT: (per Hon ble Chief Justice Sri Kalyan Jyoti Sengupta) This appeal is directed against judgment and order of learned Tribunal dt.26.3.2014 in relation to assessment year 2008- 2009, on following suggested question of law. Whether, on facts and circumstances of case and in law, Income Tax Appellate Tribunal is correct in cancelling order of CIT passed under Section 263 of Income Tax Act, without appreciating that assessing officer has failed to examine allowability of finance charges and hence, assessment order is erroneous and prejudicial to interests of Revenue? We have heard Sri J.V. Prasad, learned counsel for appellant - Revenue and gone through impugned judgment and order of learned Tribunal. Tribunal has set aside order of learned Commissioner of Income Tax, passed under Section 263 of Income Tax Act, 1961. It found that pre-conditions for invocation of provisions of Section 263 of Act are not satisfied. These pre- conditions that inheres in aforesaid Section have been explained by Supreme Court in Malabar Industries Company Ltd. v. [1] Commissioner of Income Tax observing that Commissioner of Income Tax has to be satisfied that (i) order of Assessing Officer sought to be revised is erroneous; and (ii) it is prejudicial to interests of Revenue. In this case, these elements were missing. learned Tribunal therefore correctly set aside order of Commissioner of Income Tax. In circumstances, no question of law is involved for decision by us in this appeal. appeal is accordingly dismissed. There will be no order as to costs. K.J. SENGUPTA, CJ SANJAY KUMAR, J 26.11.2014 bnr [1] 243 ITR 83 (SC) Commissioner of Income-tax I Hyderabad v. Future Tech. Industries Limited
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