2011 (6) TMI 725 - HC - Income Tax

Summary

Issues involved: Appeal u/s 260A of the Income Tax Act, 1961 challenging the order of the Income Tax Appellate Tribunal for Assessment Year 1991-92. Substantial question of law regarding separate relief u/s 80HH and 80I of the Act.

Issue 1: Appeal u/s 260A of the Income Tax Act, 1961

The appellant-revenue challenged the order dated 02.08.1999 made by the Income Tax Appellate Tribunal, Ahmedabad Bench 'C', Ahmedabad for Assessment Year 1991-92.

Issue 2: Substantial question of law regarding separate relief u/s 80HH and 80I of the Act

The Court formulated the substantial question of law: "Whether the Appellate Tribunal is right in law and on facts in directing to allow separate relief under sec. 80HH and 80I of the Act?"

The respondent's counsel referred to the Supreme Court decision in Joint Commissioner of Income Tax Vs. Mandideep Engineering And Packaging. Ind. P. Ltd. (2007) 292 ITR 1 (S.C.) to support the contention that deductions could be claimed under both sections 80HH and 80I on the gross total income. The Supreme Court observed that various High Courts had consistently upheld this view, including the Gujarat High Court in CIT v. Amod Stamping, (2005) 274 ITR 176 (Guj).

The appellant's counsel did not dispute the legal position presented by the respondent. The Tribunal's reliance on the decision of the Madhya Pradesh High Court in J.P. Tobacco Products P. Ltd. Vs. C.I.T., which was confirmed by the Supreme Court, was noted. As the Tribunal's view aligned with the decisions of the Madhya Pradesh High Court and the Gujarat High Court, the Court ruled in favor of the assessee, upholding the separate relief under sections 80HHA and 80I of the Income Tax Act, 1961. The appeal was dismissed with no order as to costs.