Tax v. There Shall Be No Order As To Costs

IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. INCOME TAX APPEAL (LODG.) NO.334 OF 2010 The Commissioner of Income Tax-18Vs. M/s.Fortune Steel Industries .... Mr. D.K.Kamwal for the Appellant.Ms. Vasanti B. Patel for the Respondent. ..... ..Appellant. ..Respondent. CORAM : DR.D.Y.CHANDRACHUD & J.P.DEVADHAR, JJ. 29 June 2010. P.C. : 1.Three questions of law have been formulated by the Revenue in this Appeal under Section 260-A of the Income Tax Act, 1961. Insofar as the first two questions are concerned, the Tribunal has remanded the matter back to the Assessing Officer for a fresh decision in the light of its Special Bench decision in the case of Topman Exports (ITA 5769/Mum/2006 dated 11 August 2009) and Kalpataru Colours and Chemicals (ITA 5651/M/2006). By the judgment of this Court delivered today in Commissioner of Income Tax v. Kalpataru Colours and Chemicals (ITA(L) 2887 of 2009), the judgment of the Tribunal in the aforesaid cases has been disapproved. In the circumstances, we direct that in disposing of the proceedings on remand, the Assessing Officer shall do so in accordance with law having due regard to the judgment of this Court rendered today in the case of Kalpataru Colours and Chemicals (supra). 2.Insofar as the third question is concerned, the Tribunal has confirmed the order of the Commissioner (Appeals) deleting an amount of Rs.10,00,500/- made on account of bogus purchases. The Commissioner (Appeals) has rendered a pure finding of fact in this regard which is recorded in paragraph 13 of the impugned decision and which has been confirmed. No substantial question of law will arise insofar as the third question is concerned. We accordingly dispose of the appeal. There shall be no order as to costs. (Dr. D.Y.Chandrachud, J.) (J.P. Devadhar, J.)