Legal Case Summary

Case Details
Case ID 37970c46-df33-430b-8e33-0ac595e5b18e
Body View case body.
Case Number IT APPEAL No. 239 OF 2002
Decision Date Apr 08, 2003
Hearing Date
Decision The appeal by the Revenue under section 260A of the Income-tax Act, 1961 was directed against the order passed by the Income-tax Appellate Tribunal, Delhi Bench, New Delhi, concerning the assessment year 1993-94. The Tribunal had deleted the trading addition made by the Assessing Officer on account of excessive claims of grinding loss by the assessee, which was contested by the Revenue. The High Court found that the Tribunal's decision was justified as the Revenue had previously accepted similar losses in other assessment years. Hence, the appeal was dismissed, affirming the Tribunal's order.
Summary This case revolves around the assessment of business losses under the Income-tax Act, specifically addressing the claims made by Rajeev Grinding Mills regarding grinding losses. The Delhi High Court evaluated the appeal filed by the Commissioner of Income Tax against the decision of the Income-tax Appellate Tribunal which had allowed the grinding loss claimed by the assessee. The Tribunal noted that the revenue had accepted similar losses in preceding and succeeding assessment years, establishing a basis for consistency in tax treatment. The High Court upheld the Tribunal's ruling, emphasizing that the Revenue should not deviate from previously accepted positions without substantial justification. This case highlights the principles of consistency and fairness in tax assessments, making it a significant reference for future disputes regarding business loss claims under the Income-tax Act.
Court Delhi High Court
Entities Involved Rajeev Grinding Mills, M.D.H. Pvt. Ltd.
Judges D.K. Jain, Madan B. Lokur
Lawyers Ms. Premlata Bansal, C.S. Aggarwal, Prakash Kumar
Petitioners Commissioner of Income Tax
Respondents Rajeev Grinding Mills
Citations 2005 SLD 2761 = (2005) 279 ITR 86
Other Citations Radhasoami Satsang v. CIT [1992] 193 ITR 321, 60 Taxman 248 (SC)
Laws Involved Income-tax Act, 1961
Sections 28(i)