Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2022 (7) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (7) TMI 797 - HC - Income TaxDisallowance u/s 14A - inter departmental dispute - cases between the Union of India and the companies fully owned by the Government of India - Tribunal held that the provisions of Rule 8D should not have been applied without appreciating that the provisions of section 14A introduced by the Finance Act, 2001 is applicable with retrospective effect from 01.04.1962 - whether Tribunal was correct in holding that the only company from which dividend is received shall be considered for the purpose of Rule 8D? - HELD THAT:- AO has recorded that accounts had revealed that there were certain heads of expenditure which could have been incurred towards the management. Thus, the Assessing Officer has made his own assessment and not recorded the satisfaction based on the record. In that view of the matter, the solitary ground urged by Shri Sanmathi is untenable. The Tribunal has rightly followed the decision of this Court in [2020 (12) TMI 679 - KARNATAKA HIGH COURT] Hence, this question of law raised by the Revenue is answered in favour of the Assessee. Resultantly, this appeal does not merit any consideration. Before parting with the case, we had requested the learned advocates on both sides and also Shri A.Shankar, learned Senior Advocate as amicus curie to assist this Court with regard to the cases pending between the Union of India and the companies fully owned by the Government of India. In the instant case, the Assessee is Hindustan Aeronautics Ltd. The appellant is the Government of India represented by the Ministry of Finance. As adverted to Section 48 of Reserve Bank of India Act, 1934 and submitted that RBI is exempted from income tax and Super tax. We see force in his contention and we are of the considered view that litigation between the Public Sector Undertakings, which are fully owned by the Government of India and regulated by the Ministries like, HAL, ISRO, etc., is not desirable. It would be in the interest of all the concerned to ensure that there is no litigation at all or as minimum litigation as most essential. We take this opportunity to convey our concern and to ensure that these directions reach the appropriate forum, we direct the learned advocate for the appellant to implead Ministry of Law and Justice and Ministry of Finance as respondents No.2 and 3. Impleadment shall be carried out forthwith. Shri Shanthibhushan, ASG is directed to take notice. We direct respondents No.2 and 3 to examine in detail and issue appropriate directions to the concerned Public Sector/Undertakings to avoid or to minimise the inter-departmental litigation. A copy of this order shall be sent to the Secretary, Ministry of Finance and also Ministry of Law and Justice for their consideration. So far as question of law is concerned, this appeal stands dismissed with the observations recorded hereinabove.
|