Commissioner of Income-tax Vs. A.J. Shetty Family Trust - Court Judgment |
| SooperKanoon Citation | sooperkanoon.com/385313 |
| Subject | Direct Taxation |
| Court | Karnataka High Court |
| Decided On | Feb-11-2000 |
| Case Number | I.T.R.C. No. 631 of 1998 |
| Judge | V.K. Singhal and ;T.N. Vallinayagam, JJ. |
| Reported in | [2001]250ITR406(KAR); [2001]250ITR406(Karn); [2002]120TAXMAN260(Kar) |
| Acts | Income-tax Act, 1961 - Sections 43B; Karnataka Excise Act, 1965 - Sections 24 |
| Appellant | Commissioner of Income-tax |
| Respondent | A.J. Shetty Family Trust |
| Advocates: | M.V. Seshachala, Adv. |
Excerpt:
- karnataka town and country planning act, 1961 (11 of 1963)
section 14-a: [p.d. dinakaran, c.j. & v.g. sabhahit, j] change of land use from master plan proceedings for change of alignment held, powers conferred on area planning authority (bimcapa) cannot be intruded or interfered with, by any other authority, much less government also. reason being manner in which duty is to be performed by bmicapa is also well laid down by statute under section 14-a. authority concerned viz. bmicapa alone shall do it in the manner prescribed under section 14-a of ktcp act, in order to follow the steps prescribed thereunder for reaching the result.government interfered and intruded into powers conferred on the bmicapa under section 14-a, can be held, that bmicapa fails to discharge duty in manner..........the contention of the assessee and allowed the appeal. against this, the department filed an appeal. the tribunal upheld the decision of the commissioner (appeals) and directed the deletion of disallowance under section 43b. the tribunal based its decision on the decision in the case of dasappa and co, in i. t. a. no. 1234/bang of 1988, dated june 9, 1994.3. the controversy is now covered by the decision of this court in the case of cit v. d. dasappa : [2000]246itr750(kar) i. t. r. c. no. 5 of 1996, decided on january 5, 2000. following the said decision, we are of the view that the tribunal was right in law in holding that 'kist' amount payable to the government by the assessee could not be brought within the purview of the provisions of section 43b of the income-tax act, 1961.4......
Judgment:K. Singhal, J.
1. The Income-tax Appellate Tribunal has referred the following question of law arising out of its order dated October 5, 1994, in respect of the assessment year 1984-85 :
'Whether, on the facts and in the circumstances of the case, particularly having regard to the changed provisions in the Karnataka Excise Act, 1965, especially the provisions of Section 24 of the said Act, the Tribunal was right in law in holding that 'kist' amount payable to the Government by the assessee could not be brought within the purview of the provisions of Section 43B of the Income-tax Act, 1961 ?'
2. The fads as stated by the Tribunal are that the assessee is a private trust in which shares of the beneficiaries are determinate and it carries on business in liquor line. For the assessment year 1984-85, the Assessing Officer disallowed under Section 43B the unpaid 'kist' amount holding that 'kist' should actually be considered as tax or duty. The assessee went on appeal contending that the kist payments cannot be considered as tax or duty and hence the provisions of Section 43B would not be attracted. The Commissioner (Appeals) upheld the contention of the assessee and allowed the appeal. Against this, the Department filed an appeal. The Tribunal upheld the decision of the Commissioner (Appeals) and directed the deletion of disallowance under Section 43B. The Tribunal based its decision on the decision in the case of Dasappa and Co, in I. T. A. No. 1234/Bang of 1988, dated June 9, 1994.
3. The controversy is now covered by the decision of this court in the case of CIT v. D. Dasappa : [2000]246ITR750(KAR) I. T. R. C. No. 5 of 1996, decided on January 5, 2000. Following the said decision, we are of the view that the Tribunal was right in law in holding that 'kist' amount payable to the Government by the assessee could not be brought within the purview of the provisions of Section 43B of the Income-tax Act, 1961.
4. The reference is answered in favour of the assessee and against the Revenue.