C.I.T. - II, Kolkata v. I.P.P. Ltd
[Citation -2015-LL-0203-17]

Citation 2015-LL-0203-17
Appellant Name C.I.T. - II, Kolkata
Respondent Name I.P.P. Ltd.
Court HIGH COURT OF CALCUTTA
Relevant Act Income-tax
Date of Order 03/02/2015
Assessment Year 1995-96
Judgment View Judgment
Keyword Tags state government • sales tax
Bot Summary: For the appellant THE COURT:-We have heard Mr.Dudhoria, learned Advocate for the revenue. The appeal is directed against a judgement and order dated 26th September, 2002 relating to the assessment year 1995-96 by which the learned Tribunal concurred with the C.I.T. in holding that liability incurred on account of interest for loan advanced by the State Government and the liability incurred on account of interest on sales tax were not covered by the provisions of Section 43B of the Income Tax Act. Section 43B of the Income Tax Act makes a departure from the usual mercantile method. This section provides for such expenditure, which cannot be availed by the assessee on an accrual basis. The facts 2 of the case why Section 43B did not apply to the case of the assessee have been discussed by the C.I.T. and also by the learned Tribunal. The learned Tribunal in doing so has also relied on the judgement of this Court. Since the point in so far as the interest on account of sales tax is concerned is already covered by the judgement of this Court in the case of C.I.T. Vs. Padmavati Rage Cotton Mills Ltd. reported in 155 C.T.R. 540 and the question with regard to interest on loan raised from the State Government is not covered by Section 43B, we are not inclined to entertain this appeal, which is, accordingly, dismissed.


ORDER SHEET ITA No.29 of 2004 IN HIGH COURT AT CALCUTTA Special Jurisdiction (Income Tax) ORIGINAL SIDE C. I. T., KOLKATA-II Versus I.P.P. LTD. BEFORE: Hon'ble JUSTICE GIRISH CHANDRA GUPTA AND Hon'ble JUSTICE ARINDAM SINHA Date : 3rd February, 2015. Mr.P. Dudhoria, Advocate. ..for appellant COURT:-We have heard Mr.Dudhoria, learned Advocate for revenue. appeal is directed against judgement and order dated 26th September, 2002 relating to assessment year 1995-96 by which learned Tribunal concurred with C.I.T. (appeals) in holding that liability incurred on account of interest for loan advanced by State Government and liability incurred on account of interest on sales tax were not covered by provisions of Section 43B of Income Tax Act. Section 43B of Income Tax Act makes departure from usual mercantile method. This section provides for such expenditure, which cannot be availed by assessee on accrual basis. facts 2 of case why Section 43B did not apply to case of assessee have been discussed by C.I.T. (appeals) and also by learned Tribunal. learned Tribunal in doing so has also relied on judgement of this Court. Mr. Dudhoria was unable to point out any good reason why this Court should interfere. Since point in so far as interest on account of sales tax is concerned is already covered by judgement of this Court in case of C.I.T. Vs. Padmavati Rage Cotton Mills Ltd. (1999) reported in 155 C.T.R. 540 and question with regard to interest on loan raised from State Government is not covered by Section 43B, we are not inclined to entertain this appeal, which is, accordingly, dismissed. (GIRISH CHANDRA GUPTA, J.) (ARINDAM SINHA, J.) nm C.I.T. - II, Kolkata v. I.P.P. Ltd
Report Error