2008 (8) TMI 939 - HC - Income Tax

Summary

Issues involved: Appeal by Revenue against Tribunal's decision deleting surcharge u/s 113 of Income Tax Act, 1961.

Summary:
The appeal was filed by the Revenue against the Tribunal's decision to delete the surcharge levied under Section 113 of the Income Tax Act, 1961. The Tribunal had accepted the appeal of the assessee, setting aside the orders of the Assessing Officer and the Commissioner, Income Tax (Appeals). The main question raised was whether the levy of surcharge while computing tax demand is a debatable issue. The Assessing Officer had rectified the mistake of not charging the surcharge, which was challenged in the appeal. The Commissioner dismissed the appeal citing various judgments and interpretations related to the issue. The Tribunal found that the non-charging of surcharge cannot be considered a mistake apparent on record and relied on the judgment of the Hon'ble Supreme Court in Volkart Brothers case. The Revenue argued citing the judgment in CIT Vs. Suresh N. Gupta by the Hon'ble Supreme Court. The High Court noted that the judgment in Suresh N. Gupta's case clarified the retrospective applicability of the amendment in Section 113 made in 2002. The Court concluded that the question of retrospective applicability was debatable at the time of the Tribunal's decision, and hence ruled against the Revenue, dismissing the appeal.