C.I.T. Kolkata-I v. M/s. Guwahati Curbons Ltd - 2014-LL-1222-17

Citation	2014-LL-1222-17
Appellant Name	C.I.T. Kolkata-I
Respondent Name	M/s. Guwahati Curbons Ltd.
Court	HIGH COURT OF CALCUTTA
Relevant Act	Income-tax
Date of Order	22/12/2014
Judgment	View Judgment
Keyword Tags	industrial undertaking • bogus expenditure
Bot Summary:	For Appellant/Petitioner : Mrs.Mamata Bhargav,Advocate For Respondent : Mr.R.Bharadwaj,Advocate The Court : This appeal under section 260A of the Income Tax Act, 1961 has been preferred against the order dated 10th June, 2005 passed by the learned Income Tax Appellate Tribunal C Bench, Kolkata in ITA No.2141(Kol)/2004 relating to the assessment year 2001-2002 on the following questions : 1. Whether on the facts and in the circumstances of the case Tribunal was justified in allowing deduction of Rs.12,60,000 under section 80- IA/80/IB of the Income Tax Act, 1961 on income by way of hire 2 charges from transport vehicles by not considering and disregarding that the aforesaid income has no close and proximate connection with industrial undertaking and in the instant case direct source of hire charge income is transport vehicles and as such not eligible for deduction under section 80-IA/80/IB of Income Tax Act, 1961 2. Whether on the facts and in the circumstances of the case Tribunal was justified in holding that disallowance of expenses for Rs.2.16 crores is not to be taken into account for computation of book profit as the adjustment for the purpose of Book Profit is limited to several items as specified in explanation below second proviso to section 115JB of the Income Tax Act, 1961 3. Whether on the facts and in the circumstances of the case Tribunal was justified in not considering that the assessee company has deflated net profit by Rs.2.16 crores by claiming bogus and ingenuine expenses and the profit shown as per profit and loss account is not correct profit and this should be increased by bogus expenditure to the tune of Rs.2.16 crores 4. Whether on the facts and in the circumstances tribunal was justified in not considering that the addition on account of bogus expenditure to profit and loss account does not amount to adjustment as specified in 3 explanation below second proviso to Section 115JB(2) of Income Tax Act, 1961 5. Whether on the facts and in the circumstances of the case conclusion arrived at by the Tribunal in granting the aforesaid relief to the assessee, is perverse Heard Mrs. Bhargav, learned advocate for the appellant and Mr.Bharadwaj, learned advocate for the respondent/assessee. Since we find from the order of the learned tribunal that the issues arising out of the questions sought to be formulated were dealt with by the tribunal by its earlier order in assessee s own case from which, it appears, the department did not prefer any appeal, in the circumstances, we do not find any substantial question of law involved in this appeal and accordingly, the same is dismissed.

ORDER SHEET ITA 425 OF 2005 IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE C.I.T. KOLKATA-I Versus M/S. GUWAHATI CURBONS LTD. BEFORE: Hon'ble JUSTICE SOUMITRA PAL Hon'ble JUSTICE ARINDAM SINHA Date : 22nd December, 2014. For Appellant/Petitioner : Mrs.Mamata Bhargav,Advocate For Respondent : Mr.R.Bharadwaj,Advocate Court : This appeal under section 260A of Income Tax Act, 1961 has been preferred against order dated 10th June, 2005 passed by learned Income Tax Appellate Tribunal C Bench, Kolkata in ITA No.2141(Kol)/2004 relating to assessment year 2001-2002 on following questions : 1. Whether on facts and in circumstances of case Tribunal was justified in allowing deduction of Rs.12,60,000 under section 80- IA/80/IB of Income Tax Act, 1961 on income by way of hire 2 charges from transport vehicles by not considering and disregarding that aforesaid income has no close and proximate connection with industrial undertaking and in instant case direct source of hire charge income is transport vehicles and as such not eligible for deduction under section 80-IA/80/IB of Income Tax Act, 1961 ? 2. Whether on facts and in circumstances of case Tribunal was justified in holding that disallowance of expenses for Rs.2.16 crores is not to be taken into account for computation of book profit as adjustment for purpose of Book Profit is limited to several items as specified in explanation below second proviso to section 115JB (2) of Income Tax Act, 1961 ? 3. Whether on facts and in circumstances of case Tribunal was justified in not considering that assessee company has deflated net profit by Rs.2.16 crores by claiming bogus and ingenuine expenses and profit shown as per profit and loss account is not correct profit and this should be increased by bogus expenditure to tune of Rs.2.16 crores ? 4. Whether on facts and in circumstances tribunal was justified in not considering that addition on account of bogus expenditure to profit and loss account does not amount to adjustment as specified in 3 explanation below second proviso to Section 115JB(2) of Income Tax Act, 1961 ? 5. Whether on facts and in circumstances of case conclusion arrived at by Tribunal in granting aforesaid relief to assessee, is perverse ? Heard Mrs. Bhargav, learned advocate for appellant and Mr.Bharadwaj, learned advocate for respondent/assessee. Since we find from order of learned tribunal that issues arising out of questions sought to be formulated were dealt with by tribunal by its earlier order in assessee s own case from which, it appears, department did not prefer any appeal, in circumstances, we do not find any substantial question of law involved in this appeal and accordingly, same is dismissed. (SOUMITRA PAL, J.) (ARINDAM SINHA, J.) ssaha AR(CR) C.I.T. Kolkata-I v. M/s. Guwahati Curbons Ltd

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