The Commissioner Of Income Tax – 4, Mumbai v. Jashan Textile Mills Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.692 OF 2009 The Commissioner of Income Tax – 4, Mumbai..Appellant. Versus Jashan Textile Mills Limited ..Respondent. Mr.Vimal Gupta for the appellant.Mr.Atul K. Jasani for the respondent. CORAM : J.P. Devadhar & Mrs.Mridula Bhatkar, JJ. P.C. : DATE : 11[th] January, 2011. 1.This appeal was admitted on 16[th] June 2009 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 right in holding that deduction allowed to the Assessee company u/s.80IA amounting to Rs.32,03,747/- should not be reduced from the deduction allowable to the Assessee Company u/s.80HHC of the Act even though the provisions of Section 80IA(9) of the Act specifically states that where deduction u/s.80IA has been claimed and allowed for any assessment year, deduction to the extent of such profits / gains shall not be allowed u/s.80HH to 80RRA of the Act ? b)Whether on the facts and in the circumstances of the case and in law the Tribunal was right in deleting the disallowance made by the Assessing Officer of 10% of the dividend income as expenditure incurred by the Assessee Company for earning the dividend income u/s.14A of the Act even though the Assessee Company had not shown any expenses whatsoever in earning the dividend income of Rs.29,09,349/- ? 2.In so far as the first question is concerned, learned counsel on both the sides state that the aforesaid question of law has already been answered by this Court in the case of Associated Capsules Private Limited V/s. Dy. Commissioner of Income Tax (Income Tax Appeal No.3036 of 2010) decided on 10th January 2011 in favour of the assessee and against the Revenue. 3.In so far as the second question is concerned, learned counsel on both the sides state that the same is covered by the decision of this Court in the case of Godrej & Boyce Manufacturing Co. Limited V/s. Dy. C.I.T. reported in 328 ITR 81. 4.The Appeal is disposed off in the above terms, with a direction to the Tribunal to re-compute the deduction in the light of aforesaid decision of this Court. No order as to costs. (Mrs.Mridula Bhatkar, J.) (J.P. Devadhar, J.)