Infructuous In View Of The Decision Of This Court Dated 12/9/2012 In Cit v. M/S. Small Industries Development Bank Of India Relating To The Assessment Year 2003-04

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL (L) NO.673 OF 2012 The Commissioner of Income Tax-3.v. Small Industries Development Bank of India. ...Appellant. ...Respondent. Mr.Vimal Gupta for the Appellant.Mr.Atul K. Jasani for the Respondent. CORAM : S.J.VAZIFDAR & M.S. SANKLECHA, JJ. DATE : 12th September, 2012. PC: This appeal by the revenue under Section 260A of the Income Tax Act,1960 (“the Act”) challenges the order dated 22/11/2011 of the Income Tax Appellate Tribunal (“the ITAT”) arising out of ITA No.3407/Mum/2006 for the for the assessment year 2002-03. 2)Being aggrieved, the revenue has formulated the following questions of law for the consideration by this Court. A)Whether on the facts and in the circumstances of the case and in law the ITAT was justified in holding that the assessee was not liable to pay income tax in assessment year 2002-03 in view of the provisions of Section 50 of the Small Industries Development Bank of India Act, 1989 even though the said section 50 was omitted with effect from 1/4/2002? B)Whether on the facts and in the circumstances of the case and in law the ITAT was justified in holding that the omission of Section 50 of the SIDBI Act, by Finance Act, 2001 was with effect from 1/4/2002 and therefore the Assessee was not liable to pay income tax for the assessment year 2002-03 without appreciating the fact that the contention of the assessee in this regard was 2/6`ITXA-673.sxw without any supporting evidence and was raised at a very late stage and the rejection thereof by the Assessing officer was not challenged before any appellant authority till date? C)Whether on the facts and in the circumstances of the case and in law the ITAT was justified in deciding the issue of applicability of Section 50 of SIDBI Act raised by the assessee for the first time before the High Court of Bombay by filing an additional ground,without appreciating the fact that the assessee had sue moto filed return of income after paying tax due on it and issue of applicability of section 50 of SIDBI Act is never raised by it in the course of assessment proceedings and appellate proceedings before the CIT and the ITAT. Further, this issue was raised by the assessee for the first time by way of application u/s. 154 which is rejected by the Assessing Officer and this rejection of application by the Assessing Officer is also not challenged by the assessee before any appellate authority? D)Whether on the facts and in the circumstances of the case and in law the ITAT was justified in deciding that the section 50 of the SIDBI Act, 1989 was very much in force in Assessment Year 2002-03 as against its own stand taken in ITA Nos. 6671/Mum/2008 and 7143/Mum/2009 dated 15/2/2012 wherein the ITAT “I” Branch, Mumbai held that According to Section 50 of the SIDBI Act, SIDBI was exempted from Income tax till the amendment under section 142 of the Finance Act, 2001 which deleted the section 50 of the SIDBI Act with effect from 1[st] April, 2002 i. e. A.Y. 2002-03 due to this amendment by way of deletion of section 50 of the effect from A.Y. 2002-03? 3)The question as raised in the present appeal have become infructuous in view of the decision of this Court dated 12/9/2012 in CIT v. M/s. Small Industries Development Bank of India relating to the assessment year 2003-04. effect from A.Y. 2002-03? 3)The question as raised in the present appeal have become infructuous in view of the decision of this Court dated 12/9/2012 in CIT v. M/s. Small Industries Development Bank of India relating to the assessment year 2003-04. 4)In any view of the matter no fault can be found with the order of the ITAT as it followed the decision of this Court in the matter of Mc Dermott International reported in 173 ITR 155. Section 50 of the SIDBI Act, 1989 exempts any income, profits and gains received by Small Industries Development Bank from payment of income tax. The aforesaid exemption as provided under Section 50 of the Small Industries Development Bank of India Act, 1989 has been omitted with effect from 1/4/2002.Therefore, the respondent assessee is not liable to pay any income tax in respect of any income derived by it for the period ending 31/3/2002. 4)In view of the above, no substantial question of law arises in this appeal. The appeal is, accordingly, dismissed. No order as to costs. ( M.S. SANKLECHA, J. ) ( S. J. VAZIFDAR, J.)