The Commissioner Of Income Tax – 7, Mumbai v. National Organic Chemical Industries Ltd., Mumbai

IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2097 OF 2009 The Commissioner of Income Tax – 7, Mumbai Versus National Organic Chemical Industries Ltd., Mumbai ..Appellant. ..Respondent. Mr.Suresh Kumar for the appellant.None for the respondent. CORAM : Dr.D.Y. Chandrachud & J.P. Devadhar, JJ. DATE : 6 July, 2010. P.C. : 1.The appeal by the Revenue is for assessment year 1991-1992. Eight questions of law have been formulated. 2.Counsel appearing on behalf of the Revenue states that question (i) shall be governed against the Revenue by the decision of this Court in Income Tax Appeal No.3025 of 2009 pertaining to the same assessee and that questions (ii) and (iii) will similarly be governed against the Revenue by the decision of this Court in Income Tax Appeal no.2100 of 2009. In view of the statement made, no substantial question of law arises. 3.As regards question (iv), there is a finding of fact by the Tribunal that the expenses in question were spill over expenses from one previous year to another which was common in respect of routine and regular expenditure. In view of this finding, no substantial question of law would arise. 4.As regards question (v), the Tribunal only remanded back the proceedings to the Assessing Officer and, therefore, it is not necessary for this Court to entertain the appeal at this stage. 5.As regards question (vi), Counsel for the Revenue states that the question will be governed by the decision of this Court in Income Tax Appeal No.1953 of 2009 where this Court in the case of the assessee declined to entertain the appeal on a similar question. Hence, no substantial question of law arises. 6.As regards question (vii), the Tribunal has arrived at a finding of fact that there is a short delivery of goods which were imported by the assessee and that the assessee was not in a position to get the claim reimbursed by the foreign supplier. That being the position, the loss was treated as a business loss. In view of these facts and circumstances, the finding of the Tribunal is unexceptionable and no substantial question of law would arise. 7.As regards question (ix), the Tribunal having only remanded back the proceedings to the Assessing Officer, it is not necessary for this Court to entertain the appeal at this stage. 8.In the circumstances, the appeal shall stand dismissed. There shall be no order as to costs. (J.P. Devadhar, J.) (Dr.D.Y. Chandrachud, J.)