J.p.devadhar, Jj v. Kalpataru Colours And Chemicals

IN THE HIGH COURT OF JUDICATURE AT BOMBAY O. O. C. J. INCOME TAX APPEAL (LODG.) NO.821 OF 2010 The Commissioner of Income Tax-18Vs. M/s.Cotton Club (India) .... Mr. D.K.Kamwal for the Appellant.Mr. Atul K. Jasani for the Respondent. ..... ..Appellant. ..Respondent. CORAM : DR.D.Y.CHANDRACHUD & J.P.DEVADHAR, JJ. 29 June 2010. P.C. : Three questions of law have been formulated by the Revenue in this appeal under Section 260-A of the Income Tax Act, 1961. Counsel appearing on behalf of the Revenue and counsel appearing on behalf of the assessee state that the first two questions will be governed by the decision of this Court rendered today in Commissioner of Income Tax v. Kalpataru Colours and Chemicals (ITA(L) 2887 of 2009). In terms of the statement made before the Court, the first two questions shall accordingly stand governed by the decision in Kalpataru Colours and Chemicals (supra). The Assessing Officer is directed upon remand to make a determination having regard to the judgment of this Court in the aforesaid case. The appeal is admitted on the following substantial question : “Whether on the facts and circumstances of the case and in law the ITAT has further erred in directing the A.O. to examine the assessee’s claim regarding netting of interest in the light of decision of the ITAT, Delhi (SB) in the case of Lalson Enterprises Ltd.?” Both the learned counsel state that the aforesaid question is governed by the decision of this Court in Commissioner of Income Tax v. Asian Star Company Ltd. (ITA 200 of 2009 decided on 18 March 2010). The third question of law is accordingly answered against the assessee and in favour of the Revenue. The appeal is accordingly disposed of. There shall be no order as to costs. (Dr. D.Y.Chandrachud, J.) (J.P. Devadhar, J.)