CIT-LTU Vs Everest Kanto Cylinder Ltd. (Bombay High Court)
The Bombay High Court recently dismissed an appeal filed by the Income Tax Department (Revenue) against Everest Kanto Cylinder Ltd. for the Assessment Year 2009-10. The Revenue had challenged the Income Tax Appellate Tribunal’s decision to delete transfer pricing adjustments related to guarantees provided by the assessee and loans granted to its Associated Enterprises.
During the hearing, the Revenue’s counsel conceded that both questions of law raised in the appeal were already settled against the department by the High Court’s own decisions in Everest Kanto Cylinder Ltd.’s earlier assessment years. Specifically, the court referred to its orders dated May 8, 2015, in Income Tax Appeal No. 1165 of 2013, and July 18, 2017, in Income Tax Appeal No. 435 of 2015. These prior judgments involved identical issues, and the Tribunal’s impugned order for AY 2009-10 had simply followed those earlier rulings. Consequently, the High Court determined that the proposed questions did not raise any substantial questions of law, leading to the dismissal of the appeal. This outcome reinforces the principle of judicial consistency, particularly when issues have been conclusively decided in an assessee’s own case by the higher courts.
FULL TEXT OF THE JUDGMENT/ORDER OF BOMBAY HIGH COURT
