Calcutta High Court
Principal Commissioner Of I.T vs M/S. Rashmi Metaliks Ltd on 7 March, 2022
OD-43
ORDER SHEET
ITAT/148/2021
IA NO:GA/2/2021
IN THE HIGH COURT AT CALCUTTA
SPECIAL JURISDICTION(INCOME TAX)
ORIGINAL SIDE
PRINCIPAL COMMISSIONER OF I.T., CENTRAL-1, KOLKATA
-VS-
M/S. RASHMI METALIKS LTD.
BEFORE:
HON'BLE JUSTICE T.S. SIVAGNANAM
AND
HON'BLE JUSTICE HIRANMAY BHATTACHARYYA
DATE: 7TH MARCH 2022.
Mr. P.K. Bhowmick, Adv., for appellant/petitioner.
Mr. A. Sengupta, Adv., for respondent.
The Court: This appeal by the revenue, filed under section
260A of the Income Tax Act, 1961, is directed against the order dated
November 13, 2019, passed by the Income Tax Appellate Tribunal "B"
Bench, Kolkata, in ITA Nos.194 to 197 (Kol) of 2019 relating to the
assessment years 2009-2010 to 2012-13. The revenue raised the following
substantial questions of law:
"(i) Whether on the facts and the circumstances of the case
and in law, the learned Income Tax Appellate Tribunal,
Kolkata was justified in allowing deduction under section
80IA of the Income Tax Act, 1961 of Rs.17,62,41,550/-
for income/profits arising from operation of private
railway siding exclusively for the benefit of assessee only
and therefore, it is not an infrastructure facility within the
meaning of explanation to section 80IA(4)(I) of the
Income Tax Act, 1961 and explanatory notes to the
provision of the Finance Act, 2007 vide circular
no.03/2008, dated 12.03.2008 and the order being
perverse and as such the order of the learned Tribunal is
not sustainable in law?
(ii) Whether on the facts and the circumstances of the case
and in law, the learned Income Tax Appellate Tribunal,
Kolkata was justified in allowing deduction under section
80IA of the Income Tax Act, 1961 for railway siding
whereas from page no.89 of seized document marked as
INDA-4, it is observed that the Sr. SCM, ORE, South
Eastern Railway had issued a letter to the assessee related
to evasion of railway freight and thereby violating
provisions of law, against claim of deduction under
section 80IA of the Income Tax Act, 1961 and hence the
Hon'ble Income Tax Appellate Tribunal failed to
appreciate the peculiar facts and circumstances of the
case?
(iii) Whether on the facts and the circumstances of the case
and in law, the learned Income Tax Appellate Tribunal
erred by failing to appreciate the terms and conditions as
per agreement entered, whereby there is no specific
clause for developing or operating and maintaining or
developing, operating and maintaining as per conditions
of deduction under section 80IA of the Act, and whereas
various Court decisions have held that strict
interpretation of statutes is required for tax
deductions/exemptions and hence the order being ultra
vires?
(iv) Whether on the facts and the circumstances of the case
and in law, the learned Income Tax Appellate Tribunal
erred in holding that the assessee is entitled to deduction
under section 80IA of the Act particularly in the light of
freight evasion which could have an impact on the
agreement with the railways?
(v) Whether on the facts and the circumstances of the case
and in law, the learned Income Tax Appellate Tribunal
erred in law in giving relief to the assessee only on the
basis of its cancelling the order passed by the Principal
Commissioner of Income Tax under section 263 of the
Act, while the appeal under section 260A has been
preferred against the very order of the learned Tribunal
cancelling the order under section 263 of the Act before
the Hon'ble High Court?"
We have heard the learned counsel for the parties. The order
impugned in a connected appeal of the Appellate Tribunal arose out of an
order giving effect to an order passed under section 263 of the Act. The said
order passed under section 263 of the Act was appealed against and the
Tribunal in ITA Nos.813 to 816/Kol/2017 allowed the appeals filed by the
assessee by order dated May 2, 2018. The said order was put to challenge
by the appellant-revenue in ITAT/75/2021 which was dismissed by this
Hon'ble Court by Judgment dated January 31, 2022.
In light of the above development, the order impugned before
us, passed by the Income Tax Appellate Tribunal "B" Bench, dated
November 13, 2019, in ITA Nos.194 to 197(Kol) of 2019, for the
assessment years 2009-10 to 2012-13, pursuant to orders passed under
section 263 of the Act by dismissing the appeals before the Tribunal, nothing
survives for consideration by this Court in this appeal.
The appeal along with the connected application accordingly
stands dismissed.
(T.S. SIVAGNANAM, J.)
(HIRANMAY BHATTACHARYYA, J.)
tk
