Allowed

S.H.Kelkar and Co. Ltd. v. Jcit Spl RANGE-54,BOMBAY

Bombay HC19 Mar 2008ITXA/227/2005

Case brief

AI extract

What is this about?

The High Court held that the Tax Tribunal erred in denying deduction under Section 35(1)(ii) because a valid DSIR-approved notification was in effect during the relevant period. The appeal was allowed, and the question raised by the Tribunal on deduction entitlement was answered in the negative and in favor of the appellant. A statutory notification covered the period including the assessment year

What did the court decide?

The appeal was allowed. The question on deduction entitlement was answered in the negative and in favor of the appellant.

S.H.Kelkar and Co. Ltd. Vs Jcit Spl RANGE-54,BOMBAY — Income Tax | Bombay HC (2008)

¶1

bsb

¶2

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION

¶3

INCOME TAX APPEAL NO. 227 OF 2005

¶4

S.H.Kelkar & Co. Ltd.... Appellant

¶5

v/s

¶6

JCIT, Special Range 54, Bombay... Respondent

¶7

Mr.Navshot Thakkar with Mr.Rajesh Poojari i/by Mulla &
Mulla & C.B.& C. for the appellant.

¶8

Mr.B.M.Chatterji with Mrs.P.P.Bhosale and Mr.P.S.
Sachdevan for the respondent.

¶9

CORAM: F.I.REBELLO AND R.S.MOHITE, JJ.

¶10

DATED: 19TH MARCH, 2008.

¶11

P.C.:

¶12

1. The learned Tribunal proceeded on the footing that
insofar as the present question is concerned that the
notification issued in favour of the petitioner at the
relevant time was approved only by Department of
Scientific and Industrial Research (hereinafter referred
to as "D.S.I.R.") and as the petitioner’s case was
governed under Section 35(1)(ii) of the Income Tax Act,
1961, that would be of no consequence.

¶13

2. Learned counsel for the appellant draws our
attention to the communication dated 4.4.1997 of

¶14

¶15

Director General of Income Tax (hereinafter referred to
as "D.G.I.T.") which has effect from the period
12.3.1997 to 31.3.1998. In other words, it would cover
also assessment year 1996-1997. This issue has not been
considered.

¶16

3. In our opinion, the following proviso to Section
35(1) would be relevant for the purpose and the same
reads as under:

¶17

"Provided also that any notification issued by
the prescribed authority under clause (ii) or
clause (iii) shall, at any one time, have
effect for such assessment year or years, not
exceeding three assessment years (including an
assessment year or years commencing before the
date on which such notification is issued) as
may be specified in the notification".

¶18

4. In the instant case, admittedly, the Tribunal itself
has observed in para 7 that the case of the assessee is
covered under Section 35(1)(ii) of the Income Tax Act.
As the notification is effective from 12.3.1997, the
petitioner’s case was fairly covered by the proviso. In
the light of that, the question as prayed, which reads

¶19

¶20

as under:

¶21

"Whether on the facts and in the circumstances
of the case the Income Tax Appellate Tribunal
was justified in holding that the appellant
was not entitled to the deduction of the sume
paid to the scientific research centre under
Section 35(1)(ii)"

¶22

will have to be answered in the negative and in favour
of the appellant.

¶23

5. Appeal accordingly allowed.

¶24

(F.I.REBELLO, J.)

¶25

(R.S.MOHITE, J.)

S.H.Kelkar and Co. Ltd. v. Jcit Spl RANGE-54,BOMBAY

Case brief

What is this about?

What did the court decide?

S.H.Kelkar and Co. Ltd. v. Jcit Spl RANGE-54,BOMBAY

Case brief

What is this about?

What did the court decide?

What the court decided

A compact analysis

Issues for consideration

Statutes considered

Parties & counsel

Coram

Case details

Similar cases

The Commissioner of Income Tax, Mumbai Vs Shri v.M.Shah

The Commissioner of Income-Tax-Ii,Mumbai Vs M/S Laxzor Syntex (P) Ltd.

The Commissioner of INCOME-TAX-8,MUM Vs M/S Nirvan Builders and Developers Ltd.

Sanjiv P. Dhanidharka Vs Asstt. Commissioner of Customs and Ors.

the commissionr of income-tax,central -ii Vs shri shreyas s. morakhia

The Commissioner of Income Tax Vs M/S. Renaissance Jewellery Pvt. Ltd.