2009 (8) TMI 1246 - HC - Income Tax

Summary

Issues involved:
The judgment addresses seven questions of law raised by the revenue, focusing on the rejection of appeals for earlier assessment years, expenses incurred by the respondent-assessee, applicability of transfer pricing provisions, programming business losses, and the computation of deduction u/s. 80HHF.

Question (a) to (c):
The appeals filed by the revenue for earlier assessment years were rejected, leading to the conclusion that these questions are not substantial for adjudication by the Court.

Question (d):
The Tribunal allowed the claim of the assessee regarding expenses incurred, citing a previous judgment that transactions approved by RBI/FIPB cannot be considered non-arms length. The transfer pricing provisions were deemed inapplicable for the relevant assessment years, making this question not substantial.

Question (e) and (f):
Question (e) does not arise from the Tribunal's order, while it is undisputed that the assessee did not incur any loss in programming business, leading to findings that cannot be faulted.

Question (g):
The Court decided to admit the appeal on the question of whether the ITAT was correct in directing to reduce 90% of the "NET" commission received by the assessee from business profits for computation of deduction u/s. 80HHF.

This judgment highlights the consideration of various legal issues raised by the revenue, with specific focus on the rejection of appeals, expenses incurred by the assessee, transfer pricing provisions, programming business losses, and the computation of deduction u/s. 80HHF.