The Commissioner Of Income Tax v. M/S Gupta Textiles

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH ITA No. 521 of 2010Date of Decision: 25.11.2010 The Commissioner of Income Tax Versus M/s Gupta Textiles ....Appellant ...Respondent. CORAM:-HON'BLE MR. JUSTICE ADARSH KUMAR GOEL.HON'BLE MR. JUSTICE AJAY KUMAR MITTAL. PRESENT: Mr. Yogesh Putney, Advocate for the appellant. ADARSH KUMAR GOEL, J. 1.This appeal has been filed by the revenue under Section260A of the Income Tax Act, 1961 against order of the Income TaxAppellate Tribunal, Delhi Bench 'C', New Delhi passed in ITA No.1990/Del/08 dated 6.11.2009 for the assessment year 2004-05,proposing to raise following substantial questions of law:- “i)Whether on the facts and in the circumstances of thecase, the Hon'ble ITAT was justified in allowingdeduction u/s 80HHC on the face value of DEPB inthe case where turnover exceeds Rs.10 crores inview of proviso (ii), (iii) and (iv) inserted by theTaxation Law (Amendment) Act, 2005 withretrospective effect from 01.04.1998? ii)Whether on the facts and in the circumstances of the case, the Hon'ble ITAT was justified in allowingdeduction u/s 80HHC in respect of entire DEPBamount by incorporating the same in the computationof business profit u/s 28(iiib)?” 2.Learned counsel for the revenue points out that identicalappeal being ITA No. 299 of 2010 (Commissioner of Income-tax v. M/s F.C. Sondhi & Company (P) Ltd.) filed by the revenue wasallowed by this Court on 16.8.2010 and the matter remanded to theTribunal. 3.Accordingly, this appeal is disposed of in same terms. Thematter may be taken up before the Tribunal on December 20, 2010along with connected matters and the Tribunal may thereafter proceedin accordance with law after due notice to the assessee. (ADARSH KUMAR GOEL) JUDGE November 25, 2010gbs (AJAY KUMAR MITTAL)JUDGE