2008 (9) TMI 982 - HC - Income Tax

Summary

Issues involved: Appeal u/s 260A of the Income-Tax Act for the assessment year 1996-97 regarding exemptions under section 10A, R&D expenses, and royalty expenses.

Exemptions under section 10A: The Revenue filed a Tax Appeal questioning the Appellate Tribunal's decision to delete additions made on accounts of exemptions under section 10A. The High Court admitted the appeal, considering it a substantial question of law, similar to another pending case.

R&D Expenses: Another issue raised was the deletion of additions made on accounts of R&D expenses by the CIT(A), which the Appellate Tribunal upheld. The High Court admitted this issue as a substantial question of law, similar to a previous case involving the same matter.

Royalty Expenses: The appeal also questioned the deletion of additions made on accounts of royalty expenses by the CIT(A), which the Appellate Tribunal confirmed. However, the High Court refused to formulate this as a substantial question of law based on previous decisions.

The High Court admitted the appeal based on the substantial questions of law related to exemptions under section 10A and R&D expenses. The Court directed the other party to be notified and allowed for the filing of additional documents within three months.