2004 (8) TMI 708 - HC - Income Tax

Summary

Issues:
Calculation of deduction under sections 80-I and 80-HH of the Income Tax Act.

Analysis:

1. The High Court considered the appeal regarding the calculation of deduction under sections 80-I and 80-HH of the Income Tax Act. The Tribunal's decision was based on a previous case, J.P. Tobacco Products (P.) Ltd. v. CIT, where the interpretation favored the assessee. The High Court noted that the Tribunal's decision aligned with the interpretation upheld by the Supreme Court as well.

2. The main issue before the Assessing Authority was how to calculate the deduction available to the assessee under section 80-I concerning another provision, section 80-HH. The High Court referenced the J.P. Tobacco Products case where a similar issue was addressed, and the interpretation favored the assessee. The Assessing Officer in the present case did not follow the precedent set by the J.P. Tobacco Products case, leading the assessee to appeal before the CIT.

3. The CIT(A) relied on the J.P. Tobacco Products case and directed the Assessing Officer to recalculate the deduction under section 80-I from the gross total income before allowing the deduction under section 80-HH. The Revenue challenged this decision before the Tribunal, which upheld the CIT's direction based on the previous court rulings.

4. The High Court emphasized that since the issue was already settled by the court and upheld by the Supreme Court, the appeal under section 260-A of the Income Tax Act did not raise any substantial question of law. Consequently, the High Court dismissed the appeal without further consideration.

In conclusion, the judgment clarified the calculation of deductions under sections 80-I and 80-HH of the Income Tax Act based on previous court decisions, ultimately upholding the direction given by the CIT and the Tribunal.