Itxa/4783/2010 Of The Commissioner Of Income Tax-(Ltu), Mumbai v. M/S. Asian Paints (India) Ltd., Mumbai

itxa4783-10 IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.4783 OF 2010 The Commissioner of Income Tax-LTU ..Appellant. V/s. Asian Paints (India) Ltd. ..Respondent. Mr. Suresh Kumar for the appellant. Mr. P.J. Pardiwala, senior Advocate with Atul K. Jasani for the respondent. CORAM : J.P. DEVADHAR AND M.S. SANKLECHA, JJ. DATED : 14TH JANUARY, 2013 P.C. :- 1.In this appeal filed by the revenue for the block period 1[st ]April, 1995 to 21[st] March, 2002, the following questions of law are raised for consideration of this Court :- (a)Whether on the facts and circumstance of the case and in law, the ITAT is right in not upholding the order of the assessing officer that the disallowances of expenses on upgradation of phatlic plant,additions u/s.41(1) and expenses on exempt income the ITAT is right in not upholding the order of the assessing officer that the disallowances of expenses on upgradation of phatlic plant,additions u/s.41(1) and expenses on exempt income were part of 'undisclosed income' as per Section 158B(b)? (b)Whether on the facts and circumstance of the case and in law, the ITAT is right in not upholding the order of the assessing officer that expenses of Rs.5,10,93,238/- on upgradation of pthalic plant were 'capital' in nature ?the ITAT is right in not upholding the order of the assessing officer that expenses of Rs.5,10,93,238/- on upgradation of pthalic plant were 'capital' in nature ? (c)Whether on the facts and circumstance of the case and in law, the ITAT is right in not upholding the order of the assessing officer that Rs.45,89,775/- representing non moving sundry credit balances of more than three years in dealers account u/s.41(1) should be added back to total income ?the ITAT is right in not upholding the order of the assessing officer that Rs.45,89,775/- representing non moving sundry credit balances of more than three years in dealers account u/s.41(1) should be added back to total income ? (d)Whether on the facts and circumstance of the case and in law, the ITAT is correct in law in not holding the order of assessing officer that the expenses of Rs.2,01,73,861/- for purchasing new systems which were Y2K complaint should be disallowed as the same do not comply with the conditions u/s.36(1)(x) ?the ITAT is correct in law in not holding the order of assessing officer that the expenses of Rs.2,01,73,861/- for purchasing new systems which were Y2K complaint should be disallowed as the same do not comply with the conditions u/s.36(1)(x) ? (e)Whether on the facts and circumstance of the case and in law, the ITAT is right in not setting aside the issue of Y2K expenses for fresh adjudication to the assessing officer even though ITAT had set aside the issue of SAP expenses on same ground of 'capital' or 'revenue' to assessing officer for fresh adjudication ?the ITAT is right in not setting aside the issue of Y2K expenses for fresh adjudication to the assessing officer even though ITAT had set aside the issue of SAP expenses on same ground of 'capital' or 'revenue' to assessing officer for fresh adjudication ? 2.The Tribunal by its order dated 9[th] January, 2009 disposed of the appeals in respect of the block period assessment for the period 1[st] April, 1995 to 21[st] March, 2002 as well as the regular period assessment years 1999-2000 to 2002-03. All the aforesaid questions were dealt with by the Tribunal while dealing with regular assessment in the impugned order and in view thereof they have specifically not dealt with these questions in the block assessment for the period from 1[st] April, 1995 to 21[st] March, 2000. In this view of the matter, the proposed questions do not arise from the order of the Tribunal dealing with the block period 1[st] April, 1995 to 21[st] March, 2000. 3.Therefore, the appeal is dismissed with no order as to costs. (M.S. SANKLECHA, J.) (J.P. DEVADHAR, J.)