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TMI Blog2014 (7) TMI 872X X X X Extracts X X X X X X X X Extracts X X X X ..... l No. 560 of 2012 - - - Dated:- 11-7-2014 - S. C. Dharmadhikari And B. P. Colabawalla,JJ. For the Appellants : Mr. A. R. Malhotra with N. A. Kazi For the Respondent : Mr. Atul K. Jasani ORDER P. C. 1. This appeal under section 260 A of the Income Tax Act, 1961 challenges the order passed by the Tribunal on 30th November, 2012. The assessment year in question is 2000-01. 2. Mr. Malhotra, learned counsel, appearing on behalf of the revenue submits that this appeal raises substantial question of law and particularly the allowability of deduction under section 80I on the income from expansion of dispersant unit. 3. Mr. Malhotra submits that the assessee is engaged in the business of manufacturing of chemical additi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment in case of Saurashtra Cement Chemicals Industries Ltd. V/s. Commissioner of Income Tax, 123 ITR 669 and the judgment following the same in the case of Commissioner of Income Tax V/s. Paul Brothers, 216 ITR 548 could not have been applied. The Tribunal's view that unless the deduction is withdrawn or rejected in the initial assessment year, the same cannot be denied in the subsequent assessment years is, therefore, erroneous and the appeal deserves admission. 6. Mr. Jasani, learned counsel, on the other hand submits that the Tribunal has rightly applied the ratio in the aforementioned judgments and deleted the addition. The deduction was rightly allowed and once the Tribunal held that for the assessment year 1991-92 the dedu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed in initial assessment years, was an issue raised squarely in the case of Paul Brothers. The Division Bench held that unless the deduction is withdrawn or rejected in the initial assessment years, the same cannot be withdrawn in the subsequent assessment years. The Tribunal merely applied the principle laid down in the decision of this Court, and therefore, concluded that the denial of deduction by the Assessing Officer on the reason of legality cannot be sustained. 9. We are of the view that having perused the Division Bench judgment of this Court in the case of Direct Information Private Limited V/s. Income Tax Officer and others reported in (2012) 349 ITR 150, the ratio in the case of Paul Brothers has been again reiterated. The Div ..... X X X X Extracts X X X X X X X X Extracts X X X X
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