Commissioner of Income-tax-II v. Preetam Singh Luthra
[Citation -2016-LL-0729-239]
| Citation | 2016-LL-0729-239 |
|---|---|
| Appellant Name | Commissioner of Income-tax-II |
| Respondent Name | Preetam Singh Luthra |
| Court | SUPREME COURT |
| Relevant Act | Income-tax |
| Date of Order | 29/07/2016 |
| Judgment | View Judgment |
| Keyword Tags | forfeited amount • licence fee |
| Bot Summary: | The challenge in this appeal by the revenue is against the Order of the High Court of Madhya Pradesh passed in I.T.A. No.59 of 2013 by which the High Court has upheld the orders of the Income Tax Appellate Tribunal and the learned Commissioner of Income Tax deleting the addition of the licence fee paid by the assessee following the forfeiture of his licence. The assessment year is of 2006-2007 and the Signature Not Verified reasoning of the Commissioner of Income Tax Digitally signed by NEETU KHAJURIA Date: 2016.08.02 18:01:55 IST Reason: as upheld by the Tribunal and the High Court appears to be that since forfeiture of the 2 amount of the licence fee has taken place the said amount has to be set off as loss for the assessment year in question. In taking the aforesaid view, the High Court had relied upon the judgment passed by the Madras High Court in The Commissioner of Income Tax vs. Chensing Ventures reported in 291 ITR 258(Mad). However in the present case, from the grounds urged before the High Court which facts have not been controverted by the assessee, it appears that the respondent had transferred the licence on 25.06.2005 to one Shankarlal Patidar and the forfeiture of the said licence took thereafter on 01.08.2005. In view of the above and as the learned Tribunal and the High Court have overlooked the aforesaid vital fact, we are of the view that the orders passed by the learned Tribunal and the High Court will require to be reversed by us. We set aside the order of the High Court affirming the order of the learned Tribunal and the learned Commissioner of Income Tax passed in favour of the assessee and affirm the order of the assessing officer disallowing the aforesaid claims of the assessee. UPON hearing the counsel the Court made the following ORDER Permission to file additional documents is granted. |