S.j. Vazifdar, A.c.j. (Qral v. Merilyn Shipping & Transports[140 Ttj I(Sb) (Vishakhapatnam)

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. ITA2672013 (O&M)Date of decision:07.05.2015 The Commissioner of Income Tax-I, Chandigarh ..Appellant Versus. M/s Bnal Prefab Pvt. Ltd. ...Respondent CORAMHONBLE MR. JUSTICE S.J. VAZIFDAR, ACTING CHIEF JUSTICEHON5BLE MR. JUSTICE G.S. SAANDHAWALI Present: Ms. Urvashi Dhugga, Advocate,for the appellant.for the appellant. Mr. Alok Mittal, Advoate, |for the respondent.for the respondent. ee S.J. VAZIFDAR, A.C.J. (QRAL) This is an appeal against the order of the Tribunal remanding thematter to the Assessing Officer to pass a fresh assessment order byconsidering the provisions of Section 40(a) (ia) of the Income Tax Act, 1961(in short the Act) in accordance with the decision of the Special Bench of theTribunal at Vishakhapatnam inACIT Vs Merilyn Shipping & Transports[140 TTJ I(SB) (Vishakhapatnam)/ oOWe have by our order and judgement dated 29.04.2015 in a groupof appeals the first of which is ITA-716-2009 titled as.P.M.S. Diesels,Phagwara Vs Commissioner of Income Tax-II, Jalandharheld in favour ofthe revenue and taken a view contrary to the one taken by the Special Benchof the Tribunal. 3The appeal was admitted by an order dated 20.11.2013 on thefollowing substantial question of law:- “While directing to examine the various|disallowances made after invoking provisions|of Section 40(a)(ia) of the Income Tax Act,1961 afresh whether the Hon’ble ITAT was| correct in further directing to follow thedecision of special Bench of Hon’ble ITATVishakhapatnam when the Hon’ble High Courtat Hyderabad directed “interim suspension”of the Special Bench’s verdict and supportedby decisions of the Hon'ble High CourtKolkata and Hon’ble High Court Ahmadabadwherein it has been held subsequently thatmajority view of the special Bench of theTribunal in the case ofM/s Merilyn ShippingATransport Vs ACIT does not lay down correctlaw.” 4AIn view of our order and judgement dated 29.04.2015, the questionof law is decided in favour of the revenue and against therespondent/assessee. In these circumstances, the Assessing Officer shall passa fresh assessment order and while dealing with the issue of Section40(a)(ia) of the Act shall do so in accordance with our aforesaid judgementand order dated 29 04.2015. Needless to add that all other contentions wouldbe open to the parties including the respondent. © 07.05.2015Amodh (S.J. VAZIFDAR)ACTING CHIEF JUSTICE (G.S. SANDHAWALIA) |JUDGE.