2015 (7) TMI 254 - HC - Income Tax

Eligibility for deduction u/s. 80IA - interest income earned by the assessee on fixed deposits with the bank and other interest income - ITAT allowed claim - Held that - the question raised by the Revenue stands concluded by an order of this Court in the Revenue s own case for the Assessment Years 1997-98 and 1998-99 in CIT v/s. Jagdishprasad M. Joshi (2008 (11) TMI 326 - BOMBAY HIGH COURT ), we do not see any reason to entertain the proposed question of law. - Decided in favour of assessee.

Summary

Issues:
- Appeal seeking re-call of the order dated 7th October, 2008
- Challenge to the order dated 28th October, 2005 passed by the Income Tax Appellate Tribunal
- Eligibility of interest income for deduction under Section 80IA of the Income Tax Act
- Previous court orders on similar questions of law

Analysis:
The judgment pertains to an Appeal seeking re-call of an order dated 7th October, 2008, where the Applicant's Appeal was dismissed for default. The Notice of Motion is allowed based on the reasons stated in the supporting affidavit. The Appeal under Section 260-A of the Income Tax Act challenges the order dated 28th October, 2005 passed by the Income Tax Appellate Tribunal for the Assessment Year 1999-2000. The main issue raised by the Revenue questions the eligibility of interest income for deduction under Section 80IA of the Act.

The Revenue formulated a specific question of law questioning the Tribunal's decision on allowing the appeal of the assessee regarding the interest income earned on fixed deposits and other sources. The tribunal's decision was based on a previous order in the case of the Respondent-Assessee for the Assessment Years 1997-98 and 1998-99. The Revenue, dissatisfied with the tribunal's decision for the earlier years, had appealed to the Court on an identical question of law. However, the Court dismissed the Revenue's appeal for the Assessment Years 1997-98 and 1998-99, stating that no substantial question of law was involved.

The Court noted that the question raised by the Revenue was already settled in the Respondent-Assessee's favor based on the earlier court order. The Court referenced previous decisions where interest income on deposits was not allowed as a deduction under Section 80IB of the Act. However, these decisions did not consider the specific case of the Respondent-Assessee. Consequently, the Court decided to follow the precedent set in the Respondent-Assessee's case and dismissed the Revenue's appeal, stating that it did not give rise to any substantial question of law. The appeal was ultimately dismissed with no order as to costs.