Itxa/190/2009 Of The Commissioner Of Income-Tax-3 Mumbai v. M/S. Suraj Diamonds (1) Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.190 OF 2009 INCOME TAX APPEAL NO.190 OF 2009 The Commissioner of Income Tax ..Appellant. V/s. M/s.Suraj Diamonds (I) Ltd. ..Respondent. Mr.Vimal Gupta for appellant. Mr.Atul Jasani for respondent. CORAM : V.C.DAGA ANDJ.P.DEVADHAR, JJ. DATED : 15TH APRIL, 2009. CORAM : V.C.DAGA AND J.P.DEVADHAR, JJ. DATED : 15TH APRIL, 2009. P.C. :- P.C. :- 1. Heard learned counsel for the appellant and the respondent. The appeal raises the following questions of law:- 1) Whether on the facts and in the circumstances of the case and in law, the Tribunal is right in confirming the CIT(A)’s order in directing the A.O. to include the proceeds of sale of scrap and labour charges received by the assessee co. in the profit of business for the purpose of computation of deduction u/s.80HHC of the I.T Act, 1961 2) Whether on the facts and in the circumstances of the case and in law, the Tribunal is right in conforming the CIT(A)’s order holding that 10% of the export incentive will not form part of the indirect cost allocable to trading export ? 2. Taking the second question first, the said question is covered by the Judgment of the Supreme - = : 2 : = - Hero Exports V/s. Commissionerof Income-tax reported in [2007] 295 I.T.R. 454 Court in the case of Hero Exports V/s. Commissioner of Income-tax (S.C.). In this view of the matter, the appeal with (S.C.). (S.C.). regard to the second question stands answered accordingly. 3. So far as the first question is concerned, in the case of the assessee itself, the question relating to exclusion of the labour charges was not pressed by the revenue in Income Tax Appeal No.1228 of 2007, evident from the order dated 4/8/2008 (copy retained on record). Hence, we do not see any question of law involved in the appeal. 4. So far as the sale of scrap is concerned, it has hardly any tax impact. In this view of the matter, appeal is dismissed in limini. (V.C.DAGA, J.) (J.P.DEVADHAR, J.) (J.P.DEVADHAR, J.)