The Commissioner Of Income Tax-Iii, Mumbai v. M/S.national Pen & Plastic Industries

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL NO. 511 OF 2006 The Commissioner of Income Tax-III,Mumbai..............Appellant. VersusM/s.National Pen & Plastic Industries. .........Respondent. Mr. Chaterjee with Ms. Anamika Malhotra for the Appellant.Mr. P.P.Pandit i/by Mr. P.P.Prabhu for the Respondent. CORAM :BILAL NAZKIandA. A. KUMBHAKONI, JJ.DATED :22ND JULY, 2008. P.C.: The Question No.(a) as framed under paragraph 5 in the memo ofappeal, reads thus: (a) Whether on the facts and circumstances of the case and in law theHonourable Triunal was right in holding that the setting aside thematter to the file of the Assessing Officer for verification as towhether interest income is out of business activity or incidental tobusiness activity and to consider the same for the purpose ofdeduction u/s. 80HHC in the light of the decision in the case ofM/s. Bangalore Clothing Co. 260 ITR 371 (Bom) in which case SLPHonourable Triunal was right in holding that the setting aside thematter to the file of the Assessing Officer for verification as towhether interest income is out of business activity or incidental tobusiness activity and to consider the same for the purpose ofdeduction u/s. 80HHC in the light of the decision in the case ofM/s. Bangalore Clothing Co. 260 ITR 371 (Bom) in which case SLP has been recommended? The matter has only been remanded by the Tribunal for a findingon the question of fact. 2.The Question No.(b) as framed under paragraph 5 in the memo ofappeal, has already been decided against the Department by the Judgment ofthe Supreme Court inHero Hondareported in 295 ITR 454 (SC). 3.In view of the above, we do not find any merit in this appeal, which ishereby dismissed. Sd/- (BILAL NAZKI, J.) Sd/- (A. A. KUMBHAKONI, J.)