Associated Capsules Pvt. Ltd v. Cit, (2012) 343 Itr 89

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.1228 OF 2007 The Commissioner of Income Tax-3, MumbaiV/s.Suraj Diamond Industries Limited ....Appellant ....Respondent Mr.Vimal Gupta for the Appellant. Mr.Atul K. Jasani for the Respondent. CORAM : S.J. VAZIFDAR AND M.S. SANKLECHA, JJ.DATE : 31ST AUGUST, 2012. P.C. :- 1.This appeal under section 260A of the Income Tax Act, 1961 was admitted by an order dated 4.8.2008 on the following substantial question of law :- “C) Whether in the facts and circumstances of the case and in law the Hon’ble ITAT was right in holding that the commission receipt and concerned expenditure should be netted out, and then the net commission income is to be excluded from profits of export business of assessee; and in restoring this issue to AO for necessary verification?” 2.The question is liable to be answered in favour of the respondent in view of the judgment of the Supreme Court in ACG Associated Capsules Pvt. Ltd. vs. CIT, (2012) 343 ITR 89. 3.The question of law is accordingly answered in favour of the respondent – assessee. The AO shall carry out the verification as per the order of the Tribunal accordingly. No order as to costs. (M.S. SANKLECHA, J.) (S.J. VAZIFDAR, J.)