Ita/460/2006 Of Commr. Of Income Tax Ldh v. M/S Avery Cycle Industries Ltd. Ldh

214 IN THE HIGH COURT OF PUNJAB AND HARYANAAT CHANDIGARH ITA No.460 of 2006 (O&M)Date of Decision: 07.08.2018 Commissioner of Income Tax, Ludhiana-lI Versus” ...... Appellant M/s Avery Cycles Limited ...... Respondent CORAM:HON'BLE MR. JUSTICE RAJESH BINDALHON'BLE MR. JUSTICE AMIT RAWAL Present:Mr. Zora Singh Klar, Advocatefor the appellant.for the appellant. RAJESH BINDAL J. The revenue is in appeal against the order dated 30.05.2005passed by the Income Tax Appellate Tribunal 'B', Bench Chandigarh inITA No.556/Chandi/2000 for the assessment year 1997-98. The same wasadmitted on 24.03.2017 for determination of following substantialquestions of law:- 1)Whether on the facts and in law, the ITAT was legallycorrect in holding that the interest income of419,53,855/- was to be included in business income ofthe respondent for the purpose of computation ofdeductions u/s 8SOHHC of the I.T. Actcorrect in holding that the interest income of419,53,855/- was to be included in business income ofthe respondent for the purpose of computation ofdeductions u/s 8SOHHC of the I.T. Act 11)Whether on the facts and in law, the ITAT was legallycorrect in holding that the Exchange rate fluctuationsand insurance claim will not form part of total turnoverwhile computing deductions u/s 80 HHC?correct in holding that the Exchange rate fluctuationsand insurance claim will not form part of total turnoverwhile computing deductions u/s 80 HHC? ITA No.460 of 2006 (O&M) 111)Whether on the facts and in law, the Tribunal was rightin deleting the disallowance of LV75,600/- relating tointerest-free advance when there was nexus between theborrowing and funds advanced by the assessee due topayments to sister concern/Directors from the interestbearing CC Account without charge of any interest? Learned counsel for the revenue did not dispute the fact thatthe amount of tax involved in the present appeal on the issues forconsideration for which the appeal was admitted is less than=a50,00,000/- and in view of the circular issued on 11.07.2018 by theGovernment of India, Ministry of Finance, Department of Revenue,Central Board Direct Taxes, the present appeal may be dismissed as notpressed. Ordered accordingly. (RAJESH BINDAL) JUDGE 07. OS2018rittu Whether speaking/reasoned: Whether reportable: (AMIT RAWAL)JUDGE Yes/NoYes/No