Itta/191/2010 Of The Commissioner Of Income Tax v. M/S Priya Wines
High Court
16 Nov 2010 In favour of: Revenue
Forum / Bench
High Court · taphc
Parties
Itta/191/2010 Of The Commissioner Of Income Tax v. M/S Priya Wines
Date of order
16 Nov 2010
Assessment year(s)
—
Outcome
Allowed
Case summary
In Itta/191/2010 Of The Commissioner Of Income Tax v. M/S Priya Wines, the High Court (2010) allowed the appeal. The decision went in favour of the Revenue.
Issue: The question whether the assessee was entitled to claim deductionof salary and interest paid to partners in the returns was considered by aDivision Bench of this Court in The Commissioner of Income Tax v M/s.Swarna Bar & Restaurant[[2]].There is no dispute that theconclusion therein squarely covers...
Decision: Accordingly the appeals filed by the Revenue are allowed, and theimpugned orders of the Income Tax Appellate Tribunal are set aside.
Summary auto-generated from the order below — read the full judgment for the complete reasoning.
Sections referenced in this judgment
The order — as passed by the High Court
THE HON’BLE SRI JUSTICE V.V.S.RAOANDTHE HON’BLE SRI JUSTICE RAMESH RANGANATHAN
I.T.T.A.Nos.191. 192, 208, 215, 217, 231, 234, 300, 303, 372, 443, 462,471, 479 and 496 of 2010
November 16, 2010
Between:
The Commissioner of Income Tax, Vijayawada
… Appellants
And
M/s.Priya Wines, Khammam
And others
... Respondents
THE HON’BLE SRI JUSTICE V.V.S.RAO
AND
THE HON’BLE SRI JUSTICE RAMESH RANGANATHANI.T.T.A.Nos.191. 192, 208, 215, 217, 231, 234, 300, 303, 372, 443, 462,471, 479 and 496 of 2010
COMMON JUDGMENT:(per Hon’ble Sri Justice V.V.S.Rao)
In all these cases the assessees were granted a licence underAndhra Pradesh Indian Liquor and Foreign Liquor Rules, 1970 andAndhra Pradesh Excise Act, 1968. The licence enabled the assessee tocarry on trade in retail liquor business. The assessees commenced theirrespective business by forming a partnership firm with others. Such firmwas constituted either before or after obtaining the licence.
In the income tax returns, for the relevant year, the assesseesclaimed deduction in respect of the salary and interest paid to thepartners. The assessing officer, following the judgment of the Supreme
Court in Biharilal Jaiswal v Commissioner of Income Tax[[1]],disallowed the deduction. The assessees were, however, successfulbefore the Income Tax Appellate Tribunal. The Revenue has now comeforward with these appeals under Section 260A of the Income Tax Act,1961.
Though the notices are served on the respondents, none appearsand nobody entered appearance for them.
The question whether the assessee was entitled to claim deductionof salary and interest paid to partners in the returns was considered by aDivision Bench of this Court in The Commissioner of Income Tax v
M/s.Swarna Bar & Restaurant[[2]].There is no dispute that theconclusion therein squarely covers the lis in these cases. Following thesame, the appeals have to be allowed.
Accordingly the appeals filed by the Revenue are allowed, and theimpugned orders of the Income Tax Appellate Tribunal are set aside. Nocosts.
________________
(V.V.S. RAO, J)
November 16, 2010YS
_______________________________
(RAMESH RANGANATHAN, J)
[2]ITTA Nos.613 of 2006 and batch, dated 09.9.2010
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