The Commissioner Of Income Tax-18 v. M/S.opera Clothings

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO. O. C. J. INCOME TAX APPEAL NO.583 OF 2008 The Commissioner of Income Tax-18. Vs. ...Appellant. M/s.Opera Clothings. ...Respondent. .... Mr.K.R.Choudhary for the Appellant.Mr. Paras S.Savla for the Respondent. .....CORAM : DR.D.Y.CHANDRACHUD AND J.P.DEVADHAR, JJ. April 9, 2010. P.C. : The appeal has been admitted on the following substantial questions of law: “(a)Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the interest income of Rs.10,36,839/- from FDR is income from business and that it has to be adjusted against the interest paid by the Assessee and only the balance has to be excluded from the profits of the business for the purpose of computing the deduction u/s.80HHC of the I.T. Act. (b)Whether on the facts and in the circumstances of the case and in law, the Tribunal was justified in holding that the insurance receipt of Rs.3,42,938/- Discount & Rebate of Rs.3,77,789 and ECGC claim of Rs.10,00,000/- were not excludible from the profits of the business of the purpose of computing the deduction u/s.80HHC.” The Tribunal did not have the occasiion to consider the decision of the Supreme Court in CIT vs. K.Ravindranathan Nair, (2007) 295 ITR 228 and of this Court dated 18[th] /19[th] March 2010 in CIT vs. Asian Star Co.Ltd. (Income Tax Appeal 200 of 2009). In the circumstances, both the Learned Counsel are agreed that the proceedings may be remanded back to the Tribunal for consideration of the aforesaid issue afresh. In order to facilitate this exercise, the impugned order of the Tribunal is set aside and the appeal is restored to the file of the Tribunal to be decided on merits. In that view of the matter, it is not necessary for this Court to answer the questions as raised. The appeal is disposed of. There shall be no order as to costs. ( Dr.D.Y.Chandrachud, J.) ( J.P.Devadhar, J.)