The Commissioner Of Income Tax v. M/S Handfab India

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. I.T.A. No.712 of 2010 & other connected cases beingITA Nos.713 and 714 of 2010 Date of decision: 23.12.2010 The Commissioner of Income Tax. Vs. M/s Handfab India. -----Appellant. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Yogesh Putney, Sr. Standing counselfor the appellant. ---for the appellant. --- ADARSH KUMAR GOEL, J. This order will dispose of ITA Nos.712 to 714 of 2010as all the appeals involve common questions of law. I.T.A. No.712 of 2010 has been preferred by therevenue under Section 260-A of the Income Tax Act, 1961 (forshort, “the Act”) against the order dated 29.9.2010 of the IncomeTax Appellate Tribunal, New Delhi in I.T.A. No.1987/Del/ 2008 forthe assessment year 1999-2000 claiming following substantialquestions of law:- “i)Whether on the facts and in the circumstancesof the case, the Hon’ble ITAT was justified inallowing deduction u/s 80 HHC on the faceof the case, the Hon’ble ITAT was justified inallowing deduction u/s 80 HHC on the face value of DEPB in the case where turnoverexceeds Rs.10 crores in view of proviso (ii), (iii)and (iv) inserted by the taxation law(Amendment) Act, 2005 with retrospectiveeffect from 01.04.1998? ii)Whether on the facts and in the circumstancesof the case, the Hon’ble ITAT was justified inallowing deduction u/s 80 HHC in respect ofentire DEPB amount by incorporating the samein the computation of business profit u/s 28(iiib)?” Learned counsel for the revenue states that thematter is covered in favour of the revenue by order of this Courtdated 16.8. 2010 in I.T.A. No.299 of 2010 Commissioner ofIncome Taxv. M/s F.C. Sondhi & Company (P) Ltd. In view of above, the appeals are disposed of in same terms. The questions proposed are answered accordingly and thematter is remanded to the ITAT for fresh decision in accordancewith law. If the respondents are aggrieved by this order, they willbe at liberty to move this Court. A photocopy of this order be placed on the file of eachconnected case. (ADARSH KUMAR GOEL) JUDGE December 23, 2010ashwani ( AJAY KUMAR MITTAL ) JUDGE