{"id":154430,"date":"2008-06-30T00:00:00","date_gmt":"2008-06-29T18:30:00","guid":{"rendered":"https:\/\/www.legalindia.com\/judgments\/purshottam-vs-dy-on-30-june-2008"},"modified":"2016-02-21T14:04:57","modified_gmt":"2016-02-21T08:34:57","slug":"purshottam-vs-dy-on-30-june-2008","status":"publish","type":"post","link":"https:\/\/www.legalindia.com\/judgments\/purshottam-vs-dy-on-30-june-2008","title":{"rendered":"Purshottam vs Dy on 30 June, 2008"},"content":{"rendered":"<div class=\"docsource_main\">Gujarat High Court<\/div>\n<div class=\"doc_title\">Purshottam vs Dy on 30 June, 2008<\/div>\n<div class=\"doc_bench\">Bench: D.A.Mehta And H.B.Antani, H.B.Antani<\/div>\n<pre>  \n\t \n\t \n\t \n\t \n\t \n\t \n\t \n\t\n\n \n \n\n\n\t \n\nSCA\/1351\/1998\t 3\/ 3\tJUDGMENT \n \n \n\n\t\n\n \n\nIN\nTHE HIGH COURT OF GUJARAT AT AHMEDABAD\n \n\n \n\n\n \n\n \n\n\n \n\nSPECIAL\nCIVIL APPLICATION No. 1351 of 1998\n \n\n \n \nFor\nApproval and Signature:  \n \nHONOURABLE\nMR.JUSTICE D.A.MEHTA \n\n \n\nAND \nHONOURABLE\nMR.JUSTICE H.B.ANTANI\n \n \n=========================================\n\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n1\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tReporters of Local Papers may be allowed to see the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n2\n\t\t\n\t\t \n\t\t\t \n\nTo\n\t\t\tbe referred to the Reporter or not ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n3\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\ttheir Lordships wish to see the fair copy of the judgment ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n4\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tthis case involves a substantial question of law as to the\n\t\t\tinterpretation of the constitution of India, 1950 or any order\n\t\t\tmade thereunder ?\n\t\t\n\t\n\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\n5\n\t\t\n\t\t \n\t\t\t \n\nWhether\n\t\t\tit is to be circulated to the civil judge ?\n\t\t\n\t\n\n \n\n \n=========================================\n \n\nPURSHOTTAM\nP PATEL - Petitioner(s)\n \n\nVersus\n \n\nDY\nCOMMISSIONER OF INCOME TAX - Respondent(s)\n \n\n========================================= \nAppearance\n: \nMR SN SOPARKAR for\nPetitioner(s) : 1, \nMR MANISH R BHATT for Respondent(s) :\n1, \n=========================================\n \n\t  \n\t \n\t  \n\t\t \n\t\t\t \n\nCORAM\n\t\t\t: \n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE D.A.MEHTA\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nand\n\t\t\n\t\n\t \n\t\t \n\t\t\t \n\n \n\n\t\t\t\n\t\t\n\t\t \n\t\t\t \n\nHONOURABLE\n\t\t\tMR.JUSTICE H.B.ANTANI\n\t\t\n\t\n\n \n\n \n \n\n\n \n\n \n \n\n\n \n\n \n \n\n\n \n\nDate\n: 30\/06\/2008 \n\n \n\n \nORAL\nJUDGMENT<\/pre>\n<p>(Per<br \/>\n: HONOURABLE MR.JUSTICE D.A.MEHTA)<\/p>\n<p>1.\tThis<br \/>\npetition challenges notice dated 16\/02\/1996 issued under Section 148<br \/>\nof the Income-Tax Act, 1961 (the \u00fdSAct\u00fd\u00fd) by the respondent<br \/>\nauthority.   The Assessment Year in question is 1985-1986.  The<br \/>\nassessment under Section 143(3) of the Act was framed by the<br \/>\nAssessing Officer vide assessment order dated 11\/03\/1988.  The<br \/>\nassessee claimed investment allowance to the tune of Rs. 29,64,477\/-.<br \/>\n In principle, the Assessing Officer, after considering the<br \/>\nsubmissions of the assessee and after making inquiries, allowed the<br \/>\nclaim in the following words;\n<\/p>\n<p>\u00fdSIn view of the above said<br \/>\ndecision, I am of the opinion that the assessee is entitled for<br \/>\ninvestment allowance\u00fd\u00fd<\/p>\n<p>2.\tHowever,<br \/>\nthe claim was restricted to the extent of positive income available.\n<\/p>\n<p>3.\tAdmittedly,<br \/>\nthe impugned notice has been issued beyond a period of 4 years from<br \/>\nthe end of the relevant Assessment Year on the basis of Supreme Court<br \/>\ndecision in the case of COMMISSIONER OF INCOME-TAX Vs N.C.<br \/>\nBUDHARAJA AND Co. AND ANR., (1993)204 ITR 412.   The reasons<br \/>\nrecorded by the Assessing Officer read as under;\n<\/p>\n<p>\u00fdSThe<br \/>\nassessee is engaged in the construction business.  The assessee<br \/>\npurchased certain machinery in the previous year relevant to<br \/>\nAssessment Year 1985-86 and claimed investment allowance under the<br \/>\nprovisions of Section 32-A of the Income-Tax Act.\n<\/p>\n<p>The<br \/>\nHon&#8217;ble Supreme Court in the case of N.C. BUDHRAJA &amp; Co. reported<br \/>\nin 204 ITR has held that the investment allowance is not allowable to<br \/>\nthe persons engaged in the construction of dam, canals etc. In view<br \/>\nof this, the investment allowance was wrongly allowed to the assessee<br \/>\nin the year under reference.  I have reasons to believe that the<br \/>\nincome amounting to Rs. 29,67,477\/-  has escaped assessment on<br \/>\naccount of wrong allowance of investment allowance to the assessee.\u00fd\u00fd<\/p>\n<p>4.\tIt<br \/>\nis an accepted position between the parties that in similar fact<br \/>\nsituation, this Court has, by a reasoned judgement rendered on<br \/>\n18\/06\/2008, decided the controversy between the parties in the case<br \/>\nof AUSTIN ENGINEERING CO. LTD Vs JOINT COMMISSIONER OF INCOME-TAX,<br \/>\nSpecial Civil Application No. 12050\/2000 and cognate matters.  Hence,<br \/>\nit is not necessary to set out the facts and contentions in detail.\n<\/p>\n<p>5.\tFor<br \/>\nthe reasons stated in the aforesaid judgement dated 18\/06\/2008 in the<br \/>\ncase of AUSTIN ENGINEERING CO. LTD (Supra), the impugned<br \/>\nnotice dated 16\/02\/1996 is quashed for the Assessment Year 1985-1986.<br \/>\n The petition is allowed accordingly.  Rule made absolute with no<br \/>\norder as to costs.\n<\/p>\n<p>\t\t\t\t\t\t\t(D.A.\n<\/p>\n<p>MEHTA, J.)<\/p>\n<p>\t\t\t\t\t\t\t(H.B.\n<\/p>\n<p>ANTANI, J.)<\/p>\n<p>siji<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Gujarat High Court Purshottam vs Dy on 30 June, 2008 Bench: D.A.Mehta And H.B.Antani, H.B.Antani SCA\/1351\/1998 3\/ 3 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD SPECIAL CIVIL APPLICATION No. 1351 of 1998 For Approval and Signature: HONOURABLE MR.JUSTICE D.A.MEHTA AND HONOURABLE MR.JUSTICE H.B.ANTANI ========================================= 1 Whether Reporters of Local Papers may be allowed [&hellip;]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_lmt_disableupdate":"","_lmt_disable":"","_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[16,8],"tags":[],"class_list":["post-154430","post","type-post","status-publish","format-standard","hentry","category-gujarat-high-court","category-high-court"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.3 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Purshottam vs Dy on 30 June, 2008 - Free Judgements of Supreme Court &amp; 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