Kishorbhai Govindbhai Chokshi V. DY C I T (Assessment)

TAXAP/446/2000

AI Insights

The case involves Kishorbhai Govindbhai Chokshi, the appellant, who contested an order from the Income Tax Appellate Tribunal concerning block assessment years 1986-87 to 1996-97. The primary legal issues revolved around the addition of Rs. 17,000 as undisclosed income and the applicability of deductions under Chapter VI-A of the Income Tax Act, 1961 against the undisclosed income computed under Chapter XIV-B. The Gujarat High Court's decision referenced a prior Division Bench decision, which held that the amendment to section 158BB by the Finance Act, 2002, was retrospective, thereby supporting the appellant's claim for deductions.

• Counselvise Citation: [2014] 140 COUNSELVISE.COM (IT) 689804 (HC-GUJARAT)
• Appeal Type: Others
• Pronouncement Date: 10-06-2014
• Assessment Year: misc
• Other Referred Cases: Commissioner of Income Tax vs. N.R. Paper and Board Ltd.
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Department Lawyers: K M PARIKH
• Assessee Lawyers: MANISH SHAH
• Keywords: Block assessment; Deductions; Income Tax; Retrospective amendment; Undisclosed income
• Section: Chapter XIV-B; Chapter VI-A; Section 158BB

Judgement Text

"O/TAXAP/446/2000 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 446 of 2000 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE K.J.THAKER ================================================================ 1 Whether Reporters of Local Papers may be allowed to see the judgment ? 2 To be referred to the Reporter or not ? 3 Whether their Lordships wish to see the fair copy of the judgment ? 4 Whether this case involves a substantial question of law as to the interpretation of the Constitution of India, 1950 or any order made thereunder ? 5 Whether it is to be circulated to the civil judge ? ================================================================ KISHORBHAI GOVINDBHAI CHOKSHI....Appellant(s) Versus DY C I T (ASSESSMENT)....Opponent(s) ================================================================ Appearance: MR MANISH J SHAH, ADVOCATE for the Appellant(s) No. 1 MR KM PARIKH, ADVOCATE for the Opponent(s) No. 1 ================================================================ CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE K.J.THAKER Page 1 of 4 O/TAXAP/446/2000 JUDGMENT Date : 10/06/2014 ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1. Being aggrieved by and dissatisfied with the impugned order passed by the Income Tax Appellate Tribunal, Ahmedabad Bench, camp at Baroda (hereinafter referred to as “the Tribunal”) dated 26.6.2000 passed in I.T.A. No. 4052/1996 with respect to block Assessment Year 1986-87 to 1996- 97, the assessee has preferred the present tax appeal by raising the following substantial questions of law: 1.Whether the interest of Rs. 17,000/- presumed by the assessing officer to have been earned from the firm of M/s. Chandulal Govindlal Chokshi where appellant was a partner, was liable to be added as undisclosed income under Chapter XIV-B of Income Tax Act, 1961 ? 2.Whether the deductions under Chapter VI-A of the Income Tax Act, 1961, are to be given from the income computed as undisclosed income under Chapter XIV-B thereof ?” 2. So far as question no. 1 reproduced hereinabove is concerned, Mr. Manish J. Shah learned advocate appearing for the appellant- assessee does not press the present appeal Page 2 of 4 O/TAXAP/446/2000 JUDGMENT considering the smallness of the amount involved. Under the circumstances, the present appeal is dismissed as not pressed so far as question no. 1 is concerned. 3. So far as question no. 2 reproduced hereinabove is concerned, Mr. Manish J. Shah learned advocate on behalf of the appellant- assessee has vehemently submitted that as such the question raised in the present appeal is now directly covered by the decision of the Division Bench of this Court in the case of Commissioner of Income Tax vs. N.R. Paper and Board Ltd., reported in [2009] 313 ITR 359 (Guj). It is submitted that by the aforesaid decision, the Division Bench of this Court has held that the amendment to section 158BB of the Act by the Finance Act, 2002, is retrospective. It is submitted that, therefore, the assessee was entitled to claim the deduction under Chapter VI- A of the Income-tax Act, 1961. 4. Shri K.M. Parikh learned advocate appearing on behalf of the Revenue is not in a position to oppose the same and is not opposing same. 5. We have gone through the impugned judgment and order passed by the learned Tribunal and the decision of the Division Bench of this Court in the case of Commissioner of Income Tax vs. N.R. Paper and Board Ltd.(supra). In the case of Page 3 of 4 O/TAXAP/446/2000 JUDGMENT Commissioner of Income Tax vs. N.R. Paper and Board Ltd.(supra), the Division Bench of this Court has held that the amended provision to section 158BB of the Act, is retrospectively applicable. In view of the above, the assessee would be entitled to deductions under Chapter-VI- A of the Income Tax Act, 1961 from the income computed as undisclosed income under Chapter-XIV- B thereof. 6. In view of the above, the question no.2 raised in the present appeal is answered in favour of the appellant-assessee and against the Revenue. Consequently, it is held that the present appellant-assessee was entitled to deductions under Chapter-VI-A of the Income Tax Act, 1961 from the income computed as undisclosed income under Chapter XIV-B thereof. The present appeal is allowed qua question no. 2 and is dismissed qua question no. 1 as not pressed. (M.R.SHAH, J.) (K.J.THAKER, J) mandora Page 4 of 4 "