2011 (12) TMI 631 - HC - Income Tax

Summary

Issues involved:
The judgment addresses three main issues raised by the revenue in the appeal:
1. Depreciation allowance before deduction under Chapter VIA
2. Exclusion of turnover of 100% EOU for deduction under Section 80HHC
3. Remand of the case regarding interest income following the judgment of Special Bench in the case of Lalson Enterprises

Depreciation Allowance (Issue a):
The Court noted that a similar question raised by the Revenue in the assessee's case had been rejected previously. Therefore, the first question regarding allowing depreciation before deduction under Chapter VIA was not entertained. The Counsel confirmed that decisions by the ITAT in the assessee's case for earlier years had been accepted by the Revenue, and no appeals had been filed. It was concluded that there was no basis to establish that the earlier decisions were erroneous or contrary to law, hence this question was also not entertained.

Exclusion of Turnover for Deduction (Issue b):
The Court addressed the issue of allowing the exclusion of turnover of 100% EOU at Pune and Wai division for computing deduction under Section 80HHC. The judgment did not provide specific details on the decision or reasoning regarding this issue.

Remand of the Case (Issue c):
Regarding the remand of the case concerning interest income following the judgment of the Special Bench in the case of Lalson Enterprises, the ITAT had instructed to follow the said judgment. The Court decided not to entertain this question as the issue was remanded back to the Assessing Officer. However, it was emphasized that while giving effect to the ITAT's order, the Assessing Officer should consider the judgment of the Court in the case of CIT vs. Asian Star Ltd, which had also considered the Special Bench decision in the Lalson Enterprises case. The appeal was disposed of accordingly, with no order as to costs.