The Commissioner Of Income Tax – 8, Mumbai v. M/S.flat Products Equipment (I) Limited

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO.2407 OF 2009 The Commissioner of Income Tax – 8, Mumbai ..Appellant. Versus M/s.Flat Products Equipment (I) Limited..Respondent. Mr.Suresh Kumar for the appellant.Mr.Jas Sanghvi i/by PDS Legal for the respondent. CORAM : J.P. Devadhar & Mrs.Mridula Bhatkar, JJ. P.C. : DATE : 11[th] January, 2011. 1.This appeal was admitted on 13[th] January 2010 on the following substantial question of law. a)Whether on the facts and circumstances of the case and in law, the Tribunal was justified in directing the A.O. to find out the nexus between the loan and payment of interest for the purpose of earning interest on Fds and thereafter allow the assessee’s plea of netting off interest ? b)Whether on the facts and circumstances of the case and in law, the Tribunal was justified in holding that the deduction u/s.80IB and 80HHC should be deducted separately from the gross total income ? 2.In so far as first question is concerned, learned Counsel on both the sides state that the same has already been answered by this Court in the case of Commissioner of Income Tax V/s. Asian Star Company reported in 326 ITR 56 in favour of the Revenue and against the assessee. 3.In so far as second question is concerned, learned counsel on both the sides state that the same 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. 4.The Appeal is disposed off accordingly 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.)