M/S.carborundam Universal Ltd v. The Joint Commissioner Of Income Tax,Special Range – I,Chennai – 600 034

IN THE HIGH COURT OF JUDICATURE AT MADRAS CORAM THE HON'BLE DR.JUSTICE VINEET KOTHARI AND THE HON'BLE MR.JUSTICE C.V.KARTHIKEYAN T.C.A.Nos.185, 186, 187, 1348 & 1349 OF 2009 M/s.Carborundam Universal Ltd.... Appellant in all Appeals -vs- The Joint Commissioner of Income Tax,Special Range – I,Chennai – 600 034.... Respondent in TCA Nos.185-187/2009 The Joint Commissioner of Wealth Tax,Special Range – I,Chennai – 600 034.... Respondent in TCA Nos.1348 & 1349/2009 T.C.A.No.185/2009 is filed under Section 27A of theWealth Tax Act,1957, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 17.08.2005, passedin WTA No.97/Mds/2000. T.C.A.No.186/2009 is filed under Section 27A of theWealth Tax Act,1957, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 17.08.2005, passedin WTA No.98/Mds/2000. T.C.A.No.187/2009 is filed under Section 27A of theWealth Tax Act,1957, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 17.08.2005, passedin WTA No.171/Mds/2000, against the proceedings of theCommissioner of Income Tax (A)-V, Chennai-34 dated 2.3.2000 forthe Assessment Year 1997-98, 1998-99 and 1996-97 against theproceedings of the Joint Commissioner of Income Tax, Chennai-34for the Assessment Year 1997-98, 1998-99 & 1996-97. T.C.A.No.1348/2009 is filed under Section 27A of theWealth Tax Act,1957, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 01.09.2005, passed https://hcservices.ecourts.gov.in/hcservices/ in WTA No.90/Mds/1999, against the proceedings of theCommissioner of Income Tax (Appeals)-V, Chennai-34 dated 25.6.99for the Assessment Year 1995-96, 1996-97 against the JointCommissioner of Income Tax, Special Range-I, Chennai dated23.12.98. T.C.A.No.1349/2009 is filed under Section 27A of theWealth Tax Act,1957, against the order of the Income TaxAppellate Tribunal, Chennai 'A' Bench, dated 01.09.2005, passedin WTA No.91/Mds/1999. Assessee has filed these Appeals under Section 27A ofthe Wealth Tax Act,1957, aggrieved by the orders passed by thelearned Income Tax Appellate Tribunal, dated 17.08.2005 and01.09.2005, for various Assessment Years from 1995-1996 to 1998-1999, by which, the Appeals filed by the Assessee came to bedismissed. 2. These Appeals filed by the Assessee were admitted bya Co-ordinate Bench of this Court on 21.04.2009/08.12.2009 onthe following Substantial Questions of Law : ''1. Whether on the facts and in thecircumstances of the case, the Tribunal was right inholding that the Transit House is assessable underWealth Tax ? 2. Whether on the facts and in thecircumstances of the case, the Tribunal was right innot considering the specific arguments of theappellant that the amendment brought under Section37 (V) of the Income Tax Act treating the TransitHouse as Guest House, the same meaning cannot beread into Wealth Tax Act, unless and until there isa specific amendment to that effect in Wealth TaxAct ? 3. Whether on the facts and in thecircumstances of the case, the Tribunal was right inconfirming the order of the lower authorities when the same has been passed in an intimation underSection 16 (1) (a) when the issues are highlydebatable ?'' 3. The only issue raised before the learned Tribunal bythe Assessee was, as to whether 'Transit House' fell within thedefinition of 'Assets', as defined in Section 2 (ea) of theWealth Tax Act,1957, and was assessable to Wealth Tax or not ? 4. The learned Tribunal disposed of the Appeals filedby the Assessee only following its earlier decision in the caseof Assessee itself in W.T.A.Nos.156,157 & 158(Mds)/97, dated23.02.2004. 5. Learned counsel for the Assessee has brought to ournotice that the above issue has been decided in favour of theAssessee by a Co-ordinate Bench of this Court under the IncomeTax Act and also under the Wealth Tax Act. the same has been passed in an intimation underSection 16 (1) (a) when the issues are highlydebatable ?'' 3. The only issue raised before the learned Tribunal bythe Assessee was, as to whether 'Transit House' fell within thedefinition of 'Assets', as defined in Section 2 (ea) of theWealth Tax Act,1957, and was assessable to Wealth Tax or not ? 4. The learned Tribunal disposed of the Appeals filedby the Assessee only following its earlier decision in the caseof Assessee itself in W.T.A.Nos.156,157 & 158(Mds)/97, dated23.02.2004. 5. Learned counsel for the Assessee has brought to ournotice that the above issue has been decided in favour of theAssessee by a Co-ordinate Bench of this Court under the IncomeTax Act and also under the Wealth Tax Act. 6. Under the Income Tax Act in Commissioner of IncomeTax v. Carborandum Universal Ltd. (present Assessee), (2000) 241ITR 407, and under the Wealth Tax Act in Carborandum UniversalLtd. v. Deputy Commissioner of Income Tax, (2013) 83 DTR 75(Mad), two different Co-ordinate Benches of this Court havedecided the said issue in favour of the Assessee. 7. However, learned Senior Standing Counsel for theRevenue has submitted that there are some judgments, which areagainst the Assessee, on the issue. In support of his case, thelearned Senior Standing Counsel has relied upon the decisions ofMadras High Court in Salem Co-operative Sugar Mills v.Commissioner of Income Tax, (1999) 240 ITR 910, and Binny Ltd.v. Assistant Commissioner of Wealth Tax, (2010) 324 ITR 34; adecision of Karnataka High Court in Commissioner of Income Taxv. IBM India Ltd., (2010) 326 ITR 170; and a decision of DelhiHigh Court in Purolator India Ltd. v. Commissioner of IncomeTax, (2007) 164 TAXMAN 164. 8. In view of the aforesaid rival submissions, we areof the view that the learned Tribunal should decide the Appealsonce again, following the subsequent development of law and alsothe subsequent decisions rendered by various High Courts. 9. Accordingly, these Appeals are disposed of, withoutanswering the Questions of Law framed above. The matters are https://hcservices.ecourts.gov.in/hcservices/ remitted back to the learned Tribunal to decide the Appealsfiled by the Assessee de novo, taking into consideration thejudgments cited by both sides as above as well as otherdecisions, if any, relied upon. No costs. Sd/- Assistant Registrar(CS IV) //True Copy// Sub Assistant RegistrardixitTo1.The Joint Commissioner of Income Tax, Special Range – I, Chennai – 600 034.2.The Joint Commissioner of Wealth Tax, Special Range – I, Chennai – 600 034.3. The Registrar, Income Tax Appellate Tribunal, Chennai 'A' Bench, Chennai.+2ccs to M/S.T.Ravikumar, Advocate Sr.34994,34995+1cc to M/S.Subbaraya Aiyar Padmanabhen, Advocate Sr.35217 T.C.A.Nos.185,186,187,1348 &1349/2009 ppa[co]srg 24/05/2019 https://hcservices.ecourts.gov.in/hcservices/