Director Of Income Tax (International v. M/S.hapag Lloyd Container Linie

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.842 OF 2008 Director of Income Tax (International ..AppellantTaxation) Vs. M/s.Hapag Lloyd Container Linie ..Respondent Mr.Parag Vyas a/w.Mr.P.S.Sahadevan for the Appellant.Mr.N.Murlidharan i/b. Crawford Bayley & Co. for theRespondent. CORAM :- DR.S.RADHAKRISHNAN &S.J.KATHAWALLA, JJ.DATE : 2ND SEPTEMBER, 2008 P.C. 1.Heard the learned Counsel for the parties. In the above Appeal, the Appellant is seeking to raise the following substantial question of law: a. Whether on the facts and in thecircumstances of the case and in law, the ITATwas justified in deleting the addition ofRs.3,57,30,790/- on the ground that debatableissues cannot be made subject matter of orderunder Section 154 of the Act? 2.We have perused the order passed by the Income Tax Appellate Tribunal, especially the reasons given in paragraph No.19, which reads as under: 19. We have heard the rival submissions andconsidered the facts and materials on record.As rightly contended by the learned Counselfor the Assessee, the Tribunal in the ordercited supra has expressed that this issue is adebatable one, even after amendment to S.44B.Thus, we do not have second opinion as to thedebatable nature of the issue. In view of :2: the decision of the Apex Court in T.S.BalaramVs. Volkrat Brothers (82 ITR 50) SC,debatable issues cannot be subject matter oforder under Section 154. In this view of thematter, we are inclined to allow the Appeal ofthe Assessee, by setting aside the order ofthe CIT (A) passed under Section 154 of theAct. Appeal. The Appeal is totally devoid of merits. Hence, the same stands dismissed. (S.J.KATHAWALLA,J.) (DR.S.RADHAKRISHNAN,J.)