Tax Management India. Com
Law and Practice  :  Digital eBook
Research is most exciting & rewarding
  TMI - Tax Management India. Com
Follow us:
  Facebook   Twitter   Linkedin   Telegram

TMI Blog

Home

2013 (12) TMI 832

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... wable on gross total income without reducing the deduction u/s 80-HH of the Act? - Held that:- Decided against the revenue. - INCOME TAX APPEAL No. - 187 of 2013 - - - Dated:- 4-9-2013 - Sunil Ambwani And Surya Prakash Kesarwani, JJ. For the Appellant : A.N. Mahajan and D. Awasthi For the Respondent : R.S. Agrawal ORDER:- 1. We have heard Sri Dhananjay Awasthi for the appellant-department. Shri Bhoopesh Jain and Sri R.S. Agarwal appears for the respondent-assessee. 2. This Income Tax Appeal under Section 260-A of the Income Tax Act 1961 (the Act) is directed against the judgment and order of the Income Tax Appellate Tribunal (Delhi Bench 'E', New Delhi) dated 08.04.2005 in ITA Nos. 5323/Del/97 and 5195/Del/97 for the Ass .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ble in respect of Guest House. In the said case, the Supreme Court observed in para 30 as follows: "The only question which we are called upon to consider in the instant case is whether the expression 'premises and buildings' referred to in Sections 30 and 32 and used for the purposes of the business or profession would include within its scope and ambit the expression 'residential accommodation including any accommodation in the nature of guest house' used in Sub-sections (3), (4) and (5) of Section 37 of the Act. While the two expressions can be similarly interpreted, a distinction has been sought to be introduced for the purposes of Section 37 by specifying the nature of building to be a guest house. In our view, the intention of .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... of each other and therefore a new industrial unit can claim deductions under both the sections on the gross total income independently or that deduction under section 80-I can be taken on the reduced balance after taking into account the benefit taken under section 80 HH. The Madhya Pradesh High Court in J.P. Tobacco Products P. Ltd v. CIT reported in [1998] 229 ITR 123 took the view that both the sections are independent and, therefore, the deductions could be claimed both under sections 80-HH and 80-I on the gross total income. Against this judgment a special leave petition was filed in this court which was dismissed on the ground of delay on July 21, 2000 (see [2000] 245 ITR (St.) 71). The decision in J.P. Tobacco Products P. Ltd .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

..... ordingly, the civil appeal is dismissed. No costs." The question No. 2 is thus decided against the revenue and in favour of respondent-assessee. 6. On question Nos. 3 and 6 are concerned, we find that it does not arise for consideration, from the facts and circumstances of the case. 7. On question No. 5, we find that it is covered by judgment of the Court decided inter party in CIT Vs. Radico Khaitan Ltd [(2005) 274 ITR 354] in respect of Assessment year 1990-91. In paragraph 24 of the judgment it was held that in respect of interest on the loan advanced to the sister concern namely M/s. Rampur International Private Ltd the assessee has sufficient funds available, and interest was thus arising out of the loan advanced to the sist .....

X X   X X   Extracts   X X   X X

→ Full Text of the Document

X X   X X   Extracts   X X   X X

 

 

 

 

Quick Updates:Latest Updates