Gujarat State Fertilizers & Chemicals Ltd. v. Dy. CIT

Case Laws Analysis
REFERRED CIT v. Reliance Utilities & Power Ltd. 2009 TaxPub(DT) 1275 (Bom-HC)
REFERRED Asstt. CIT v. Saurashtra Kutch Stock Exchange Ltd. 2008 TaxPub(DT) 2300 (SC)

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The Tax PublishersR/Tax Appeal No. 60 of 2024 with R/Tax Appeal No. 82 of 2024 with R/Special Civil Application No. 578 of 2024 2024 TaxPub(DT) 1184 (Guj-HC) IN THE GUJARAT HIGH COURT BHARGAV D. KARIA & NIRAL R. MEHTA, JJ. Gujarat State Fertilizers & Chemicals Ltd. v. Dy. CIT R/Tax Appeal No. 60 of 2024 with R/Tax Appeal No. 82 of 2024 with R/Special Civil Application No. 578 of 2024 20 February, 2024 Appellant(s) by: Manish J Shah Opponent(s) by: Karan G Sanghani COMMON ORAL ORDER *Bhargav D. Karia, J.* 1.Tax Appeal No. 60 of 2024 is filed by the assessee under section 260A of the Income Tax Act, 1961 (for short the IT Act) arising out of the Order dated 24-3-2023 passed by the Income Tax Appellate Tribunal, Ahmadabad A Bench, Ahmadabad (for short the Tribunal) in ITA No. 547/AHD/2016 for A.Y. 2011-12 raising the following proposed questions of law. (i) Whether on the facts and circumstances of the case, the Tribunal has materially erred in remanding the matter back to the assessing officer in respect of disallowance to be made under section 14A of the Income Tax Act, 1961? (ii) Whether on the facts and in circumstances of the case, the Tribunal erred in not following the judgment of this Honble Court and the order of coordinate bench of the Tribunal of preceding assessment year i.e. assessment year 2010-11 rendered on identical facts, while deciding the appeal for assessment year 2011-12? 1.1 Tax Appeal No. 82 of 2024 is filed by the assessee under section 260A of the Act arising out of the Order dated 24-3-2023 passed by the Tribunal in ITA No. 624/AHD/2016 for A.Y. 2011-12 raising the following proposed questions of law. (i) Whether on the facts and circumstances of the case, the Tribunal has materially erred in remanding the matter back to the assessing officer in respect of disallowance to be made under section 14A of the Income Tax Act, 1961? (ii) Whether on the facts and in circumstances of the case, the Tribunal erred in not following the judgment of this Honble Court and the order of coordinate bench of the Tribunal of preceding assessment year i.e. assessment year 2010-11 rendered on identical facts, while deciding the appeal for assessment year 2011-12? 1.2Special Civil Application No. 578 of 2024 is filed against the order passed by the Tribunal in Miscellaneous Application Nos. 55 to 57/AHD/2023 dated 23-8-2023, whereby the Miscellaneous Applications filed by the assessee are dismissed arising out of the Common Order dated 24-3-2023 passed in ITA No. 547/AND/2016, ITA No. 624/AHD/2016 with Cross Objection No. 58/AHD/2016 in ITA No. 247/AHD/2016. 2. The facts in brief are as under. 2.1 For assessment year 2011-12 the assessee filed return of income on 28-9-2011 declaring total income of Rs. 890,01,99,410. During the course of regular assessment under section 143(3) of the Act, the assessing officer while passing the assessment Order dated 20-1-2014 disallowed the interest expenses of Rs. 01,82,91,360 and administrative expenses of Rs. 02,12,49,050 invoking the provisions of section 14A by making total addition of Rs. 03,95,40,410. 2.2 Being aggrieved, the assessee preferred appeal before the Commissioner (Appeals) (for short CIT (A)) who disposed of the appeal by Order dated 31-12-2015 to partly allow the appeal of the assessee and deleted the disallowance made in respect of the interest expenses of Rs. 01,82,91,360 and confirmed the disallowance on administrative expenses of Rs. 02,12,49,050, with a direction that for the purpose of arriving at average value of investment under Rule 8D of the Income Tax Rules, 1962 (for short the Rules), investment made in TIFERT and National Savings Certificate to be excluded. SUBSCRIBE FOR FULL CONTENT

The Tax PublishersR/Tax Appeal No. 60 of 2024 with R/Tax Appeal No. 82 of 2024 with R/Special Civil Application No. 578 of 2024
2024 TaxPub(DT) 1184 (Guj-HC)

IN THE GUJARAT HIGH COURT

BHARGAV D. KARIA & NIRAL R. MEHTA, JJ.

Gujarat State Fertilizers & Chemicals Ltd. v. Dy. CIT

R/Tax Appeal No. 60 of 2024 with R/Tax Appeal No. 82 of 2024 with R/Special Civil Application No. 578 of 2024

20 February, 2024

Appellant(s) by: Manish J Shah

Opponent(s) by: Karan G Sanghani

COMMON ORAL ORDER

Bhargav D. Karia, J.

1.Tax Appeal No. 60 of 2024 is filed by the assessee under section 260A of the Income Tax Act, 1961 (for short the IT Act) arising out of the Order dated 24-3-2023 passed by the Income Tax Appellate Tribunal, Ahmadabad A Bench, Ahmadabad (for short the Tribunal) in ITA No. 547/AHD/2016 for A.Y. 2011-12 raising the following proposed questions of law.

(i) Whether on the facts and circumstances of the case, the Tribunal has materially erred in remanding the matter back to the assessing officer in respect of disallowance to be made under section 14A of the Income Tax Act, 1961?

(ii) Whether on the facts and in circumstances of the case, the Tribunal erred in not following the judgment of this Honble Court and the order of coordinate bench of the Tribunal of preceding assessment year i.e. assessment year 2010-11 rendered on identical facts, while deciding the appeal for assessment year 2011-12?

1.1 Tax Appeal No. 82 of 2024 is filed by the assessee under section 260A of the Act arising out of the Order dated 24-3-2023 passed by the Tribunal in ITA No. 624/AHD/2016 for A.Y. 2011-12 raising the following proposed questions of law.

1.2Special Civil Application No. 578 of 2024 is filed against the order passed by the Tribunal in Miscellaneous Application Nos. 55 to 57/AHD/2023 dated 23-8-2023, whereby the Miscellaneous Applications filed by the assessee are dismissed arising out of the Common Order dated 24-3-2023 passed in ITA No. 547/AND/2016, ITA No. 624/AHD/2016 with Cross Objection No. 58/AHD/2016 in ITA No. 247/AHD/2016.

2. The facts in brief are as under.

2.1 For assessment year 2011-12 the assessee filed return of income on 28-9-2011 declaring total income of Rs. 890,01,99,410. During the course of regular assessment under section 143(3) of the Act, the assessing officer while passing the assessment Order dated 20-1-2014 disallowed the interest expenses of Rs. 01,82,91,360 and administrative expenses of Rs. 02,12,49,050 invoking the provisions of section 14A by making total addition of Rs. 03,95,40,410.

2.2 Being aggrieved, the assessee preferred appeal before the Commissioner (Appeals) (for short CIT (A)) who disposed of the appeal by Order dated 31-12-2015 to partly allow the appeal of the assessee and deleted the disallowance made in respect of the interest expenses of Rs. 01,82,91,360 and confirmed the disallowance on administrative expenses of Rs. 02,12,49,050, with a direction that for the purpose of arriving at average value of investment under Rule 8D of the Income Tax Rules, 1962 (for short the Rules), investment made in TIFERT and National Savings Certificate to be excluded.