Pr. Commissioner of I.Tax- Delhi-2 v. Bharat Sanchar Nigam Ltd.

Delhi High Court · 01 Aug 2016 · 2016:DHC:8505-DB
S. Muralidhar; Najmiwaziri
ITA 480/2016 & ITA 486/2016
2016:DHC:8505-DB
tax appeal_dismissed Significant

AI Summary

The Delhi High Court dismissed the Revenue's appeals, upholding the ITAT's deletion of additions to book profit for deferred government grants and bond issuance expenses under Section 115JB of the Income Tax Act, relying on Supreme Court precedent.

Full Text
Translation output
I
HIGH COURT OF DELHI
21.
ITA 480/2016
PR. COMMISSIONER OFI.TAX- DELHI-2 Appellant
Through; Mr. P. Roy Chaudhuri, Senior Standing
Counsel.
VERSUS
BHARAT SANCHAR NIGAM LTD. Respondent
Through: Mr. Mayank Nagi and Ms. Husnal Syali, Advocates.
AND
27.
ITA 486/2016
PR. COMMISSIONER OF I.TAX-DELHI-2 Appellant
Through: Mr. P. Roy Chaudhuri, Senior Standing
Counsel.
VERSUS
BHARAT SANCHAR NIGAM LTD. Respondent
Through: Mr. Mayank Nagi and Ms. Husnal Syali, Advocates.
CORAM:
JUSTICE S. MURALIDHAR JUSTICE NAJMIWAZIRI
01.08.2016 CM No. 27278/2016 (for exemption) in ITA No. 480/2016
CM No. 27287/2016 (for exemption) in ITA No. 486/2016
ORDER

1. Allowed, subject to all just exceptions. ITA No. 480/2016 & ITA No. 486/2016 ITA Nos. 480/2016 & 486/2016 Page 1 of[2] 2016:DHC:8505-DB

2. These two appeals are directed against the common order dated 22"'' January 2016 passed by the Income Tax Appellate Tribunal (TTAT') in ITA NO. 3718/Del/2006 and ITA No. 3440/Del/2006 for the Assessment Year ('AY') 2003-04.

3. There are two questions sought to be urged by the Revenue. The first is whether the ITAT erred in deleting the addition made to the book profit under Section 115JB of the Income Tax Act, 1961 ('Act') on account of deferred ^ rgovernment grant despite agreeing with the Revenue that it was a revenue receipt. It is not in dispute that this question stands answered against the Revenue and in favour ofthe Assessee by the decision ofthe Supreme Court in the case ofApollo Tyres Ltd. v. CIT (2002) 255ITR 273 (SC).

4. The other question that is sought to be urged concerns the deletion of the addition made by the Assessing Officer ('AO') on account of disallowance of bond issuance expenses. The ITAT has in this regard concurred with the CIT (A) that it is arevenue expense. The Court is not persuaded to frame aquestion oflaw on this issue on which there are concurrent findings by the CIT (A) and ( the ITAT. -

5. Theseappeals are accordingly dismissed.

S. MURALroHAR, J

NAJIVH WAZIRI, J AUGUST 01, 2016 dn