Pr. Commissioner of Income-tax-2 v. Bharat Petroleum Corporation Ltd
[Citation -2020-LL-0113-56]

Citation 2020-LL-0113-56
Appellant Name Pr. Commissioner of Income-tax-2
Respondent Name Bharat Petroleum Corporation Ltd.
Court HIGH COURT OF BOMBAY
Relevant Act Income-tax
Date of Order 13/01/2020
Assessment Year 2003-04
Judgment View Judgment
Keyword Tags computation of disallowance • manufacture or production • prospective application • disallowance of deduction
Bot Summary: By this Appeal the Appellant challenges the order dated 19 October 2016 in Income Tax Appeal No. 2258/Mum/2011 passed by the Income Tax Appellate Tribunal. The following questions have been raised by the Appellant Revenue as the substantial questions of law :- 1/3 45. As far as first questions No. A and B are concerned, the decision of the Supreme Court in the case of Commissioner of Income Tax vs. Hindustan Petroleum Corporation Ltd. 2017 396 ITR 696 is placed on record. It is a common ground that in view of this dicta of the Supreme Court, the substantial questions of law as framed will have to be answered against the Appellant Revenue. As regard questions of law Nos.C and D are concerned, they proceed on the basis that principle laid down under Rule 8D of the Income Tax Rules, 1962 ought to have taken into consideration and applied in the case of the Respondent Assessee. The Rule 8D is held to applicable from the assessment years 2008-09 in the case of Commissioner of Income Tax vs. Essar Teleholdings Ltd. 2018 401 ITR 445. In view of the above position, the questions of law cannot be considered as substantial questions of law.


IN HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 1488 OF 2017 Pr. Commissioner of Income Tax-2. ..Appellant vs. Bharat Petroleum Corporation Ltd., Taxation Section ..Respondent Mr. Suresh Kumar for appellant. Mr. Jehangir Mistri, Senior Counsel a/w. Mr. Atul Jasani for respondent. CORAM : NITIN JAMDAR & M.S.KARNIK, JJ. DATE : 13 JANUARY 2020 P.C.:- Heard learned counsel for parties. 2. By this Appeal Appellant challenges order dated 19 October 2016 in Income Tax Appeal No. 2258/Mum/2011 passed by Income Tax Appellate Tribunal. 3. Appeal pertains to Assessment Year 2003-2004. 4. following questions have been raised by Appellant Revenue as substantial questions of law :- 1/3 45. itxa 1488-17.doc (A) Whether on facts and in circumstances of case in law, Income Tax Appellate Tribunal was justified in holding that bottling of gas into gas cylinders as production activity for purpose of 80H, 80I and 80IA ignoring fact that no new production comes into existence in this process ? (B) Whether on facts and in circumstances of case in law, Income Tax Appellate Tribunal was justified in holding that bottling of gas into gas cylinders as production activity for purpose of 80H, 80I and 80IA relying on decision of jurisdictional High Court in case of CIT Vs. HPCL where in fact Revenue has not accepted this decision ? (C) On facts and circumstances of case and in law, Income Tax Appellate Tribunal erred in restricting disallowance under Section 14A of Income Tax Act read with 8D made by Assessing Officer without appreciating that it was correctly worked out as per method of calculation prescribed in Rule 8D of Income Tax Rules, 1962 ? (D) On facts and circumstances of case and in law, Income Tax Appellate Tribunal erred in restricting disallowance under Section 14A of Income Tax Act read with 8D made by Assessing Officer without appreciating that method of working of disallowance is held as reasonable method by jurisdictional High Court in case of Godrej & Boyce Mfg. Co. Ltd. Vs. CIT 328 ITR 81 (Bom) ? 2/3 45. itxa 1488-17.doc 5. As far as first questions No. and B are concerned, decision of Supreme Court in case of Commissioner of Income Tax vs. Hindustan Petroleum Corporation Ltd. [2017] 396 ITR 696 (SC) is placed on record. It is common ground that in view of this dicta of Supreme Court, substantial questions of law as framed will have to be answered against Appellant Revenue. 6. As regard questions of law Nos.C and D are concerned, they proceed on basis that principle laid down under Rule 8D of Income Tax Rules, 1962 ought to have taken into consideration and applied in case of Respondent Assessee. Assessment Year in question is 2003-04. Rule 8D is held to applicable from assessment years 2008-09 in case of Commissioner of Income Tax vs. Essar Teleholdings Ltd. [2018] 401 ITR 445 (SC). 7. In view of above position, questions of law cannot be considered as substantial questions of law. Appeal is accordingly disposed of. (M.S.KARNIK, J.) (NITIN JAMDAR, J.) Digitally signed by Diksha Diksha Rane Rane Pr. Commissioner of Income-tax-2 v. Bharat Petroleum Corporation Ltd
Report Error