COMMISSIONER OF INCOME TAX Vs. MUNJAL CASTINGS

JUDGEMENT

(1.) THIS order shall dispose of IT Appeal Nos. 393, 394, 395 and 401 of 2007 which have been filed under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as the Act'). For the purposes of this judgment, facts are being taken from IT Appeal No. 393 of 2007.

(2.) THE appeal is directed against the order 28 -2 -2007 passed by the Tribunal, Chandigarh Bench B, Chandigarh in IT Appeal No. 475/Chd/2005 in respect of assessment year 2000 -01. It has been claimed that the following substantial questions of law would arise for determination of this Court:

(3.) AFTER hearing the learned Counsel for the revenue we are of the considered view that no question of law warranting admission of the appeal would arise because firstly there would be no tax effect as the interest income realised from the capital invested by the partners is bound to be assessed in their hands. They cannot, in any case be taxed twice. The Tribunal has dealt with the aforementioned issue in paras 21, 22, 23 and 24 of its order. Moreover, if the view taken by the assessing officer is one of the possible view then it cannot constitute the basis for the Commissioner to brush aside that view in preference to his own view in exercise of jurisdiction under Section 263 of the Act. In that regard the Tribunal has rightly placed reliance on a judgment of Hon'ble the Supreme Court in the case of Malabar Industrial Co. Ltd. v. CIT : (2000) 243 ITR 83. The following para of the judgment fully supports the conclusion which has rightly been drawn by the Tribunal.