2011 (4) TMI 1438 - HC - Income Tax

Summary

Issues involved: Appeal against Tribunal's judgment on deduction u/s 80IA on interest, profit calculation, and depreciation without production of bills.

Deduction u/s 80IA on interest: Revenue appealed Tribunal's decision allowing deduction u/s 80IA on interest received on margin money. Counsel argued Tribunal erred by not applying precedent. Court deemed this issue necessary for consideration.

Profit calculation without accounting for losses: Tribunal did not address this issue as it was decided in favor of Revenue by CIT (Appeals) and upheld by Tribunal. Hence, this question was deemed not arising.

Depreciation without production of bills: Tribunal concluded that availability and use of machinery for business are crucial for depreciation claim. Lack of evidence from Revenue led Tribunal to rule in favor of the assessee. Court found this issue to be factual and no substantial legal question arose.

Conclusion: Tax appeal admitted for consideration of the deduction u/s 80IA on interest alone.