Case Law Details
DDIT Vs Linklaters (ITAT Mumbai)
Introduction: A recent decision by the Income Tax Appellate Tribunal (ITAT) in the case of DDIT vs. Linklaters, Mumbai, sheds light on an important aspect of tax liability. The central issue at hand is whether interest under Section 234B of the Income Tax Act is applicable when certain income qualifies for deduction. This article delves into the details of the case and the ITAT’s ruling.
Detailed Analysis:
1. Background of the Case: The case revolves around an appeal filed by the Revenue against an order passed by the Commissioner of Income Tax (Appeals) for the assessment year 2005-2006. It’s essential to note that the same issue had been previously addressed by the Tribunal in the assessee’s own case (Linklaters Vs. ITO) and reported in (2010) 40 SOT 51. The Departmental Representative argued that the current appeal should follow the precedent set in the earlier decision, as there were no distinguishing features or changes in facts or law. The counsel for the assessee sought an adjournment, stating that an application for the formation of a Special Bench had been made in another similar case, and the assessee was contemplating filing a miscellaneous application against the Tribunal’s previous order. However, the request for an adjournment was not granted.
2. ITAT’s Decision: The ITAT considered the facts and circumstances of the case and noted that no Special Bench had been constituted, and no miscellaneous application had been filed against the previous order in the assessee’s own case. The ITAT emphasized that when a particular issue has been decided by the Tribunal in an earlier year in the assessee’s favor, and there are no changes in facts or laws, there is no basis for deviating from the previous ruling. Consequently, the ITAT allowed one ground and dismissed another in the present appeal based on their previous judgment in the assessee’s favor.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
