Tax Appeal Nos. 22 Of 2007, 7 Of 2009, 81 & 82 Of 2008 v. S. Dempo & Co. Pvt. Ltd

1 IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NOS. 22 OF 2007, 7 OF 2009, 81 & 82 OF 2008 V. S. Dempo & Co. Pvt. Ltd. …. Appellant Versus The Assistant Commissioner of Income Tax…. Respondent Mr. Mihir Naniwadekar and Ms. V. Palyekar, Advocates for theAppellant. Ms. S. Linhares, Advocate for the Respondent. Coram : R. D. Dhanuka & Prithviraj K. Chavan, JJ. nd April, 2019 Date : 2 P.C. At the request of the learned counsel for the Appellant,the papers were allowed to be produced at 2.30 p.m. 2.All these appeals were admitted on the followingsubstantial question of law. 2 “Whether on the facts and in the circumstances of thecase and on fair and proper interpretation of Section80HHC and in particular clause (baa) of theExplanation, the Appellate Tribunal was right in law inexcluding the following items admittedly constitutingpart of business profit in computing the “profits ofbusiness”, on the ground that they have no nexus to theexport activities, ignoring the specific wording of theSection as amended from 01.04.1992: a) LeasingIncome; b) Income from Bills Discounting; c) Incomefrom Transfer Vessel; d) Barge Freight; e) ConstructionReceipts; f) Stevedoring Income; g) Travel AgencyBusiness.” 3.The learned counsel for the Appellant fairly drew ourattention to the judgment of this Court delivered on 7th May, 2015in the case of Sesa Goa Ltd. Vs The Commissioner of IncomeTax in Tax Appeal No.53 of 2006 and the order dated 7thSeptember, 2015 in the case of V. S. Dempo and Co. Pvt. Ltd. VsThe Assistant Commissioner of Income Taxin Income TaxAppeal No.936 of 2015 and would submit that the substantialquestion of law formulated by this Court while admitting theseappeals is decided against the assessee in both these judgment/order. 4. The statement made by the learned counsel for the 3 TXA22-07&Orsdt.02.04.2019 Appellant is accepted. In view of the judgment of this Court dated7th May, 2015 in the case of Sesa Goa Ltd. ( supra ) and the orderdated 7th September, 2015 in the case of V. S. Dempo and Co.Pvt. Ltd. ( supra ), following the judgment of this Court in the caseof Sesa Goa Ltd. Vs The Commissioner of Income Tax in TaxAppeal No.53 of 2006, the substantial question of law framed bythis Court is answered in affirmative, against the assessee and infavour of revenue. These appeals are disposed of on the aforesaidterms. No order as to costs. Prithviraj K. Chavan, J.R. D. Dhanuka, J. at*