Principal Commissioner Of Income Tax vs Harmuny Entertainment Pvt. Ltd on 17 January, 2025

Calcutta High Court

Principal Commissioner Of Income Tax vs Harmuny Entertainment Pvt. Ltd on 17 January, 2025

Author: T.S. Sivagnanam

Bench: T.S. Sivagnanam, Hiranmay Bhattacharyya

OD-13


                    IN THE HIGH COURT AT CALCUTTA
                   SPECIAL JURISDICTION (INCOME TAX)
                             ORIGINAL SIDE


                             ITAT/165/2024
                           IA NO: GA/2/2024
           PRINCIPAL COMMISSIONER OF INCOME TAX-1, KOLKATA
                                  VS.
                   HARMUNY ENTERTAINMENT PVT. LTD.


BEFORE :

THE HON'BLE THE CHIEF JUSTICE T.S. SIVAGNANAM
             And
THE HON'BLE JUSTICE HIRANMAY BHATTACHARYYA
Date : 17th January, 2025

                                                                   Appearance :
                                                           Mr. Tilak Mitra, Adv.
                                                         Mr. Amit Sharma, Adv.
                                                                 ...for Appellant
                                             Mr. Abhratosh Majumder, Sr. Adv.
                                                      Mr. Avra Mazumder, Adv.
                                                 Mr. Brijesh Kumar Singh, Adv.
                                                   Mr. Suman Bhowmick, Adv.
                                                           Ms. Alisha Das, Adv.
                                                       Mr. Kausheyo Roy, Adv.
                                                              ...for Respondent

The Court : This appeal has been filed by the appellant/revenue under

Section 260A of the Income Tax Act, 1961 (the Act) challenging the order dated

7th July, 2023 passed by the Income Tax Appellate Tribunal, Bench “C”, Kolkata

(Tribunal) in ITA No.161/Kol/2023, for the assessment year 2012-13.
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We have heard Mr. Tilak Mitra, learned standing counsel appearing for the

appellant/revenue and Mr. Abhratosh Majumder, learned senior counsel for the

respondent/assessee.

The appeal is admitted on the following substantial questions of law :-

i) Whether the facts and circumstances of the case, Hon’ble Income

Tax Appellate Tribunal, Kolkata has erred in granting relief to the

respondent and is justified to set aside the Ld. CIT(A)’s order on

account of disallowance made by Assessing Officer u/s 28(iv) of the

Income Tax Act, 1961 amounting to Rs. 3,12,27,393/- ?

ii) Whether the facts and circumstances of the case, Hon’ble Income

Tax Appellate Tribunal, Kolkata has erred in granting relief to the

respondent on account of disallowances made by Assessing Officer

u/s 28(iv) of the Income Tax Act, 1961 amounting to

Rs.3,12,27,393/- citing the decision of Hon’ble Supreme in the case

of M/s CIT Vs Sugauli Sugar Works (P) Ltd. [1999] 236 ITR 518 (SC)

whereas the present issue is not squarely covered in the said

decision of Hon’ble Supreme Court. In that case, the Hon’ble Apex

Court held that the cessation of the liability may occur either by

reason of the operation of law, that is, on the liability becoming

unenforceable at law by the creditor and the debtor declaring

unequivocally his intention not to honour his liability when payment

is demanded by the creditor or a contract between the parties, or by

discharge of the debt the debtor making payment thereof to his

creditor. Whereas in the present case, the sundry creditor has made
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written off the alleged Bad Debts and the same was already been

allowed while computing the total income. Hence, is never the intent

of the legislature to allow double benefit on the same amount, once

in the hand of the payer and against in the hand of the payee ?

iii) Whether the facts and circumstances of the case, Hon’ble Income

Tax Appellate Tribunal, Kolkata has erred in granting relief to the

respondent and is justified to set aside the Ld. CIT(A)’s order on

account of disallowances made by Assessing Officer on Repair and

maintenance charge amounting to Rs. 9,99,856/- ?

The stay application GA 2 of 2024 stands disposed of.

Though the stay application is formally disposed of, the same shall

however be retained with the records and be treated as an informal paper book

in this appeal.

List this appeal after 10(ten) weeks for hearing.

(T.S. SIVAGNANAM, C.J.)

(HIRANMAY BHATTACHARYYA, J.)

SN/SDas.

AR(CR)