Tax City-3 v. M/S Standard Industries Ltd

-1- IN THE HIGH COURT OF JUDICATURE AT BOMBAY O.O.C.J. Income Tax Appeal No. 721 of 2002 The Commissioner of Income Tax City-3 ..Appellant vs. M/s Standard Industries Ltd. ..Respondent’’ Mr.Vimal Gupta for appellant. Ms.Vasanti B.Patel for respondent. CORAM: Dr.S.RADHAKRISHNAN &S.J.KATHAWALLA JJ. 4th September,2008 CORAM: Dr.S.RADHAKRISHNAN & S.J.KATHAWALLA JJ. 4th September,2008 P.C. P.C. 1. Heard the learned Counsel appearing for the appellant and the learned Counsel appearing for the respondent. 2. The above appeal was admitted on 9th September, 2004 on the following substantial question of law. "Whether another facts and in the circumstances of the case the Tribunal was justified in law in holding that interest under section 217 of the Income Tax Act is not leviable when income is computed under section 115-J of the Income Tax Act? 3. Both the learned Counsel for the appellant and -2- respondent categorically state that the Tribunal had relied on the judgment of Karnataka High Court in the case of Kwality Biscuits Ltd. Vs. Commissioner of Income Tax reported in 243 ITR 519 which judgment was carried in appeal by way of Special Leave Petition before the Hon’ble Supreme Court and the Hon’ble Supreme Court in its judgment in the case of Commissioner of Income Tax. Vs. Kwality Biscuits Ltd. reported in 284 ITR 434 (SC) has upheld the view taken by Karnataka High Court. 4. In the light of the principles laid down in the said judgment we answer the aforesaid question of law in negative in favour of the assessee and against the revenue. (S.J.KATHAWALLA J.) (Dr.S.RADHAKRISHNAN J.) (S.J.KATHAWALLA J.) (Dr.S.RADHAKRISHNAN J.)