2012 (3) TMI 678 - HC - Income Tax

Summary

Issues involved: Appeal by Revenue u/s 260A of Income Tax Act, 1961 regarding ITAT order for Assessment Year 1995-96.

First issue: Whether 90% of income by way of lease rent need not be reduced u/s 80HHC for computation of deduction. Tribunal followed SC judgment in Laxmi Machine Works case and remitted proceedings to AO for computation, no substantial question of law.

Second issue: Whether ITAT was justified in allowing relief of Rs. 14,40,51,077 u/s 80I without appreciating AO's reasons for reducing claim. Counsel states recent judgment in favor of Assessee would govern the matter, no substantial question of law.

Third issue: Whether Pimpri II and Urse II units qualify for separate deduction u/s 80I as expansion of existing industrial undertakings. Counsel relies on recent judgment in favor of Assessee, no substantial question of law.

Fourth issue: Whether Tribunal should have applied Kerala High Court's decision in Periyar Chemicals Ltd. case. Not considered separately.

The High Court dismissed the appeal, stating no substantial question of law arises for the first, second, and third issues based on recent judgment favoring the Assessee. The fourth issue was not separately considered. No order as to costs was given.