The Hon’ble Bombay High Court in an appeal filed by the Revenue had to decide on questions of law arising out of the order passed by the Tribunal, relating to disallowance of certain expenses. The Hon’ble Court as regards the first question held that the question was covered by the decision of Supreme Court in T.R.F. Ltd. v. CIT [2010] 323 ITR 397 (SC). The second question became a non-issue and as regards the third question, as the matter had been remanded to the CIT(A) for admission of additional ground, the Hon’ble Court directed the CIT(A) to decide the same on merits within 3 months. As regards question nos. 4, 5 and 6, the Hon’ble Court observed that the same had attained finality as the Revenue had not contested the findings of Tribunal in assessee’s own case in previous years on the same question of law. Accordingly, the appeal was dismissed. (AY.1997-98)
PCIT v. Tata Chemical Ltd (No. 1) [2024] 469 ITR 250 / 162 taxmann.com 11 (Bom)(HC)
S. 37(1): Business expenditure-Commissioner of Income Tax (Appeals) directed to decide the issue on disallowance of deduction claimed on debenture resumption within 3 months as matter pertains to year 1997-98-Revenue has accepted the finding of Tribunal in assessee’s own case in previous years regarding disallowance of expenses on entertainment expenditure and expenses related to school the same question of law cannot be raised in a subsequent year. [S. 40A (9), S. 246A, 260A].