2008 (1) TMI 344 - HC - Income Tax

Whether ITAT was right in law in directing not to reduce 10% of the interest income from the profit of business - Whether ITAT was right in law in holding that Central Sales Tax, and Sales Tax be excluded from the total turnover of the assessee while computing deduction u/s 80 HHC - same question has been decided in favour of the assessee in similar cases - In view of the said decision of the Supreme Court, this appeal is hereby dismissed

Summary

Issues:
1. Whether to reduce 10% of the interest income from the profit of business.
2. Whether to exclude Central Sales Tax and Sales Tax from the total turnover of the assessee while computing deduction u/s 80 HHC.

Analysis:
1. The Department filed an appeal against the ITAT's order regarding the reduction of 10% of the interest income from the business profit. The court noted that the same issue was decided in favor of the assessee by the Supreme Court in a previous case. Therefore, the appeal was dismissed based on the Supreme Court's decision in Civil Appeal No. 5315 of 2007, where a similar question was resolved in favor of the assessee.

2. The second issue involved whether Central Sales Tax and Sales Tax should be excluded from the total turnover of the assessee for computing deduction u/s 80 HHC. During the motion hearing, it was acknowledged that a judgment of the High Court in a previous case had already ruled against the revenue on this matter. Subsequently, the court mentioned that the Supreme Court had also decided the same question in favor of the assessee in a different case. Therefore, considering the decisions of both the High Court and the Supreme Court, the appeal was dismissed in light of the judgments favoring the assessee.