THE COMMISSIONER OF INCOME TAX(CENTRAL) V. OIL COUNTRY TUBULAR LTD

ITTA/213/2018

AI Insights

The case involves an appeal by the Commissioner of Income Tax (Central), Hyderabad against the order of the Income Tax Appellate Tribunal, Hyderabad, which had previously ruled on a dispute concerning the accrual of income by Oil Country Tubular Ltd. for the assessment year 2001-02. The primary legal contention was whether the income from products and services was accrued to the assessee despite a subsisting agreement with Grand Prideco during the accounting year, which was only released from liability after the financial year closed. The Tribunal had found that the income was not accrued, leading to the present appeal. The High Court, however, concluded that the issues raised were factual and had been adequately addressed by the Tribunal, thus rejecting the appeal.

• Counselvise Citation: [2023] 140 COUNSELVISE.COM (IT) 685795 (HC-TELANGANA)
• Appeal Type: Others
• Pronouncement Date: 01-08-2023
• Assessment Year: misc
• Laws Referred To: Income Tax Act, 1961
• Result in Favour of: Others
• Court: HIGH COURT
• Assessee Lawyers: J V PRASAD
• Keywords: Accrual of income; Colorable device; Income Tax; Mercantile system of accounting; Tax Avoidance
• Section: 2604

Judgement Text

"[ 3386 ] IN THE HIGH COURT FOR THE STATE OF TELANGANA AT HYDERABAD TUESDAY, THE FIRST DAY OF AUGUST TWO THOUSAND AND TWENTY THREE PRESENT THE HON'BLE SRI JUSTICE P.SAM KOSHY AND THE HON'BLE SRI JUSTIGE A. LAXMI NARAYANA INCOME TAX TRIBUNAL APPEAL No: 213 OF 2018 lncome Tax Tribunal Appeal Under Section 2604 of the lncome Tax Act, '1961 arising out of the order of the lncome-Tax Appellate Tribunal, Hyderabad Bench ' B ' Hyderabad, in ITA No.260/Hyd/2005, for Assessment Year 2001-02 dated:30-05-2008 preferred against the Order of the Commissioner of lncome Tax , (Appeals)-lV, Hyderabad, Appeal No.2'12lCC-1/ClT(A)-lV/04-03, dated:'1 2-01-2005, preferred against the Order of the Deputy Commissioner of lncome Tax Central Circle-|, Hyderabad, P.A.N / c.l.R No.0-1/DCIT/CC-|, dated 31-O3-2OO4. Between: The Commissioner of Income Tax(Central), Hyderabad. ...APPELLANT/RESPONDENT AND Oil Country Tubular Ltd. 108, Kanchanjunga, King Koti Road Hyderabad. ...RESPONDENT/APPELLANT Counsel for the Appellant: SRI J.V. PRASAD, SC FOR lT DEPARTMENT Counsel for the Respondent: None Appeared The Cour.t delivered the following: JUDGMENT THE HON'BLE SRI JUSTICE P.SAM KOSITY AND THE HON'BLE SRI JUSTICE A. LAXMI NARAYANA I.T.T.A. No. 213 of 2018 JUDGMENT:p er Hon'b[(; Sri Justtce P.SAM KOSHlf) The present appeal is taken up for hearing and dispo:;a1 at the admission stage. 2. The grounds raised in the present appeal read as under: Whether in the facts and circumstances of the case, the Tribunal is correcl in lar,v in holding that thc income in respect of pr,tducts and serviccs $,as not accrued to the assessee in spite of the fa.ct that the agreement r,vith Grand Prideco was subsisting during accolrnting year and u'as released by agreement dated 28.11.01 from the liability subsequent to the closurc of the financial year 31.03.C1 and the assessec rvas following mercantile system of accounting? Whether in the lacts and circumstances of the case, the order of the Tribunal is not perverse in not considering the Iindirrgs of the assessing officer that the device adopted by the asscssee is a colourable device to avoid taxation on its income?\" 3. Upon due consideration of the above grouncls, we hnd that all the grounds raised by the appellant are on facts and not the substantial questions of law, ar-rd that the Appellate Tribunal has already considered the said facts on merits. 4- In view of the same, since therc is no substaltial question of law, the appeal is devoid of merit ald accordingly star-rds rejected. No order as to costs. .?../ I I 2 \"1 2 5. Consequently, miscellaneous petitions pending, if any, shall stzrnd closed Sd/-C.V.MALLIKARJUNA VARMA JOINT REGISTRAR //TRUE COPY// ,/'- -iD SECTION OFFICER To, kam Btu 1. The lncome-Tax Appellate Tribunal, Hyderabad Bench ' B ' Hy$erabad 2. The Commissioner of lncome Tax , (Appeals)-lV' Hyderabad. 3. The Deputy Commissioner of lncome Tax Central Circle-|, Hyderabad' 4. One CC to SRI J.V. PRASAD, SC FOR lT DEPARTMENT IOPUC] 5. Two CD Copies g l I I HIGH COURT DATED:01 10812023 JUDGMENT lTTA.No.213 of 2018 THE APPEAL IS REJECTED e,.4\" o .J [B SEP Utr rl9 Er tE. t . r /!: !. h,;.,'(c1l o .b e W f^*3 ( v "