Commissioner Of Income Tax v. M/S Nahar Spinning Mills Ltd

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.151 of 1999 Date of decision: 9.11.2010 Commissioner of Income Tax. Vs. M/s Nahar Spinning Mills Ltd. -----Appellant. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Rajesh Katoch, Standing Counselfor the appellant. Mr. Sanjay Bansal, Sr. Advocate withMs. Shaweta Malhotra, Advocatefor the respondent. --- ADARSH KUMAR GOEL, J. This appeal has been preferred by the revenue underSection 260-A of the Income Tax Act, 1961 (for short, “the Act”)against the order dated 5.5.1999 of the Income Tax AppellateTribunal, Chandigarh in I.T.A. No.1663/Chandi/1991 for theassessment year 1987-88 proposing to raise following substantialquestion of law:- “Whether on the facts and in the circumstances of thecase, the Ld. ITAT was right in law in upholdingOrders of the Ld. CIT(A) that Deduction u/s 80-I isadmissible even on the Export Incentive and CashCompensatory Assistance on Export even though the receipt of which is not attributable to conduct of anyManufacturing Activities by the Respondent.” Learned counsel for the assessee does not disputethat the matter is covered in favour of the revenue by judgment ofthe Hon’ble Supreme Court inCIT v. Sterling Foods(1999) 237ITR 579. Accordingly, the substantial question of law isanswered in favour of the revenue and the appeal is allowed. (ADARSH KUMAR GOEL) JUDGE November 09, 2010ashwani ( AJAY KUMAR MITTAL ) JUDGE