Pr. Commissioner of Income-tax -13 v. Tops Group Electronics Systems Ltd
[Citation -2019-LL-0226-23]

Citation 2019-LL-0226-23
Appellant Name Pr. Commissioner of Income-tax -13
Respondent Name Tops Group Electronics Systems Ltd.
Court HIGH COURT OF BOMBAY
Relevant Act Income-tax
Date of Order 26/02/2019
Assessment Year 2009-10
Judgment View Judgment
Keyword Tags notional interest • computation of income • uncontrolled transaction
Bot Summary: This appeal under Section 260 A of the Income Tax Act, 1961, challenges the order dated 19.2.2016 passed by the Income Tax Appellate Tribunal, Mumbai. Multiple questions have been raised in the appeal, the Revenue urges only the following two questions for our consideration:- 1 of 3 ::: Uploaded on - 27/02/2019 ::: Downloaded on - 28/02/2019 11:55:20 ::: 3. OS ITXA 1721 16.doc Whether under the facts and circumstances of the case, the Tribunal is right in applying the ratio of the decision of the High Court in the case of Vodafone India Services Pvt Ltd 368 ITR 001 to the facts of the present case wherein the transaction has a bearing on computation of income Whether the Tribunal is right in deleting the addition on account of notional interest amounting to Rs. 18,62,62,539/- ignoring the fact that the same is the opportunity cost of the excess money invested and hence, is the amount that would have been recovered in an uncontrolled transaction 4. Regarding Question No. : 4.1 It is an agreed position between the parties that the issue raised herein stands concluded by the decision of this Court in the case of Pr. Commissioner of Income Tax- 7 Vs. M/s. PMP Auto Components Pvt Ltd in Income Tax Appeal No. 1685 of 2016 rendered on 20.2.2019. Thus, this question as proposed does not give rise to any substantial question of law not entertained. OS ITXA 1721 16.doc this issue has been concluded in favour of the respondent assessee and against the Revenue by this Court in Pr. Commissioner of Income Tax-6 Vs. M/s. Aegis Limited in Income Tax Appeal No. 1248 of 2016 rendered on 28.1.2019 wherein this issue was dealt with question No. 1 thereto. Thus, this question also does not give rise to any substantial question of law not entertained.


IN HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. INCOME TAX APPEAL NO. 1721 OF 2016 Pr. Commissioner of Income Tax -13 .. Appellant Versus Tops Group Electronics Systems Ltd .. Respondent ................... Mr. Ashok Kotangle a/w Mr. Prabhakar Ranshur for Appellant Mr. Mandar Vaidya for Respondent ................... CORAM : AKIL KURESHI & M.S. SANKLECHA, JJ. DATE : FEBRUARY 26, 2019. P.C.: 1. This appeal under Section 260 of Income Tax Act, 1961 ("the Act" for short), challenges order dated 19.2.2016 passed by Income Tax Appellate Tribunal, Mumbai ( Tribunal for short). 2. appeal relates to Assessment Year 2009-10. 3. Though, multiple questions have been raised in appeal, Revenue urges only following two questions for our consideration:- 1 of 3 ::: Uploaded on - 27/02/2019 ::: Downloaded on - 28/02/2019 11:55:20 ::: 3. OS ITXA 1721 16.doc (i) Whether under facts and circumstances of case, Tribunal is right in applying ratio of decision of High Court in case of Vodafone India Services Pvt Ltd [368 ITR 001 (BOM)] to facts of present case wherein transaction has bearing on computation of income? (ii) Whether Tribunal is right in deleting addition on account of notional interest amounting to Rs. 18,62,62,539/- ignoring fact that same is opportunity cost of excess money invested and hence, is amount that would have been recovered in uncontrolled transaction?" 4. Regarding Question No. (i) : 4.1 It is agreed position between parties that issue raised herein stands concluded by decision of this Court in case of Pr. Commissioner of Income Tax- 7 Vs. M/s. PMP Auto Components Pvt Ltd in Income Tax Appeal No. 1685 of 2016 rendered on 20.2.2019. This by following decision of this Court in case of Vodafone Services Pvt Ltd Vs. Union of India reported in 268 ITR 1. Thus, this question as proposed does not give rise to any substantial question of law, hence, not entertained. 5. Regarding Question No. (ii): 5.1 It is agreed position between parties that 2 of 3 ::: Uploaded on - 27/02/2019 ::: Downloaded on - 28/02/2019 11:55:20 ::: 3. OS ITXA 1721 16.doc this issue has been concluded in favour of respondent assessee and against Revenue by this Court in Pr. Commissioner of Income Tax-6 Vs. M/s. Aegis Limited in Income Tax Appeal No. 1248 of 2016 rendered on 28.1.2019 wherein this issue was dealt with question No. 1 thereto. Thus, this question also does not give rise to any substantial question of law, hence, not entertained. 6. Accordingly, Appeal is dismissed. [ M.S. SANKLECHA, J. ] [ AKIL KURESHI, J ] Pr. Commissioner of Income-tax -13 v. Tops Group Electronics Systems Ltd
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