| Case ID |
e32f2c5c-8d3c-4a62-9828-958da43e6163 |
| Body |
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| Case Number |
Income-tax Case No.57 of 1990 |
| Decision Date |
Nov 18, 1996 |
| Hearing Date |
|
| Decision |
The Punjab and Haryana High Court examined two petitions under section 256(2) concerning the assessment years 1981-82 and 1982-83. The key issues revolved around the justification of the Income-tax Appellate Tribunal's decisions regarding duty draw-back and cash incentives, as well as the entitlement for weighted deductions under section 35-B of the Income Tax Act, 1961. The court determined that the Tribunal was required to provide clarity on whether the assessee was entitled to duty draw-back and cash incentive on a cash or accrual basis. Ultimately, the court directed the Tribunal to refer these important questions of law for further adjudication, emphasizing the necessity of a detailed examination of the facts and circumstances surrounding the case, which could significantly impact the tax obligations of the petitioner. |
| Summary |
This case involves the assessment of tax obligations under the Income Tax Act, 1961, specifically concerning the treatment of duty draw-back and cash incentives for the manufacturing and export of hosiery goods. The Punjab and Haryana High Court reviewed the decisions made by the Income-tax Appellate Tribunal, focusing on whether these incentives should be accounted for on a cash or accrual basis. The court's decision underscores the importance of clear accounting methods in tax assessments and the implications of weighted deductions for businesses. This case is crucial for understanding the nuances of tax law as it relates to exporters and the applicability of deductions under the Income Tax Act. The ruling will provide guidance on how similar cases may be handled in the future, ensuring compliance with tax regulations while promoting fair treatment for businesses engaged in export activities. |
| Court |
Punjab and Haryana High Court
|
| Entities Involved |
COMMISSIONER OF Income Tax,
BHANDARI HOSIERY MILLS (P.) LTD
|
| Judges |
G.S. Singhvi,
B. Raai
|
| Lawyers |
S.S. Mahajan,
Ms. Aparana Mahajan
|
| Petitioners |
BHANDARI HOSIERY MILLS (P.) LTD
|
| Respondents |
COMMISSIONER OF Income Tax
|
| Citations |
1999 SLD 202,
1999 PTD 1555,
(1997) 226 ITR 956
|
| Other Citations |
CIT v. Oswal Woollen Mills Ltd. (1987) 163 ITR 207 (P&H)
|
| Laws Involved |
Income Tax Act, 1961
|
| Sections |
256(2),
35
|