2011 (8) TMI 1246 - HC - Income Tax

Summary

Issues involved: Interpretation of balance written back in respect of expenditure incurred by the assessee for deduction under Section 80HHC.

Judgment Summary:

First Issue:
The appellant raised four questions, but the first three were deemed covered against the assessee based on a previous court decision. Therefore, those questions were not entertained.

Second Issue:
The Income Tax Appellate Tribunal disallowed the claim of the assessee regarding the balance written back in respect of the expenditure incurred, following a previous court decision. The question arose whether this balance can be considered as business income eligible for deduction under Section 80HHC.

Third Issue:
The Commissioner of Income Tax (Appeals) found that the balance written back in respect of the expenditure incurred by the assessee should be considered as business income eligible for deduction under Section 80HHC. The question was whether the decision of the court in a previous case would apply in this situation.

Judgment:
The Income Tax Appellate Tribunal's order was set aside on the fourth question, and the issue was restored to the assessing officer for fresh consideration in line with the law. The assessing officer was directed to consider the decision of the court in another case while passing a fresh order. The appeal was disposed of with no order as to costs.