The Commissioner Of Income Tax, 7 v. M/S.the Ruby Mills Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAYO. O. C. J. INCOME TAX APPEAL NO.415 OF 2008 The Commissioner of Income Tax, 7. ...Appellant. Vs. M/s.The Ruby Mills Ltd....Respondent. .... Mr. Vimal Gupta with Mr.Suresh Kumar for the Appellant.Mr.J.B. Andhyarujina,Sr. Advocate with Mr. Balasaheb G. Yewale i/b. Rajesh Shah & Co. for the Respondent. ..... J.P.DEVADHAR, JJ. CORAM : DR.D.Y.CHANDRACHUD AND March 19, 2010. P.C. : The appeal by the Revenue was admitted on the following substantial question of law: “ Whether, on the facts and in the circumstances of the case and in law, the Tribunal was right in holding that 90% of the net interest paid having nexus with interest required to be reduced from the eligible export profit for the purpose of computation of export profit allowable to be deducted u/s.80HHC of the Income Tax Act, 1961, in view of the provisions contained in Section 80 HHC(4A)(baa)?” Counsel appearing on behalf of the Assessee and Counsel appearing on behalf of the Revenue stated that in terms of the judgment which we have delivered today in CIT vs. Asian Star Co. Ltd. (Income Tax Appeal No.200 of 2009), the question of law would have to be answered against the assessee and in favour of the Revenue. For the reasons stated in our judgment in Asian Star, the question of law is answered in favour of the Revenue and against the assessee. The appeal is allowed. There shall be no order as to costs. ( Dr.D.Y.Chandrachud, J.) ( J.P.Devadhar, J.)