The Commissioner Of Income Tax v. M/S Liberty Enterprises

IN THE HIGH COURT OF PUNJAB AND HARYANA ATCHANDIGARH. The Commissioner of Income Tax. Vs. M/s Liberty Enterprises. I.T.A. No.804 of 2010 (O&M)Date of decision: 13.1.2011 -----Appellant. -----Respondent CORAM:- HON'BLE MR. JUSTICE ADARSH KUMAR GOELHON'BLE MR. JUSTICE AJAY KUMAR MITTAL Present:-Mr. Yogesh Putney, Sr.Standing counselfor the Revenue. --- ADARSH KUMAR GOEL, J. 1. This appeal has been preferred by the revenue underSection 260-A of the Income Tax Act, 1961 (for short, “the Act”)against the order of the Income Tax Appellate Tribunal, NewDelhi dated 16.2.2010 in I.T.A. No.4760/DEL/2009 proposing to raise following substantial questions of law:- “i)Whether on the facts and circumstances of the case, theITAT was justified in allowing deduction u/s 80HHC ontheface value of DEPB in the case where turnover exceedsRs.10 crores in view of proviso (ii), (iii) and (iv) inserted bythe taxation Law (Amendment) Act, 2005 withretrospective effect from 01.04.1998?ITAT was justified in allowing deduction u/s 80HHC ontheface value of DEPB in the case where turnover exceedsRs.10 crores in view of proviso (ii), (iii) and (iv) inserted bythe taxation Law (Amendment) Act, 2005 withretrospective effect from 01.04.1998? ii)Whether on the facts and circumstances of the case, theHon’ble ITAT was justified allowing deduction u/s 80 HHCin respect of entire DEPB amount by incorporating thesame in the computation of business profit u/s 28(iiib)?Hon’ble ITAT was justified allowing deduction u/s 80 HHCin respect of entire DEPB amount by incorporating thesame in the computation of business profit u/s 28(iiib)? iii)Whether on the facts and circumstances of the case, theLd. ITAT was justified in placing reliance upon the decisionof Income-tax Appellate Tribunal, Special Bench, Mumbaiin the case of M/s Topman Exports Vs. ITO (209)-TOIL-531-ITAT dated 11.08.2009 despite the fact that thedecision of the Mumbai ITAT Special Bench in the case ofTopman Export, supra has been reversed by the decisionLd. ITAT was justified in placing reliance upon the decisionof Income-tax Appellate Tribunal, Special Bench, Mumbaiin the case of M/s Topman Exports Vs. ITO (209)-TOIL-531-ITAT dated 11.08.2009 despite the fact that thedecision of the Mumbai ITAT Special Bench in the case ofTopman Export, supra has been reversed by the decision of the Hon’ble Bombay High Court in the case of CIT vs.Kalpataru Colours and Chemicals-TIOL-482-HC Mum.?” 2. Learned counsel for the appellant states that the matter iscovered in favour of the revenue by orders of this Court dated16.8.2010 in I.T.A. No.301 of 2010 CIT v. M/s Victor ForgingsandI.T.A. No.299 of 2010CITv. F.C. Sondhi, wherein after noticingthe judgment of the Bombay High Court in CITv. KalpataruColours & Chemicals2010 (42) DTR 193, the matter wasremanded to the Tribunal for fresh decision in accordance withlaw. 3. Since we find that the matter is covered by earlierorders of this Court, we dispose of this appeal in same terms.For this purpose, we have not considered it necessary to issuenotice to the respondent, but we give liberty to the respondent tomove this Court if they have any grievance against this order. (ADARSH KUMAR GOEL) JUDGE January 13, 2011ashwani ( AJAY KUMAR MITTAL ) JUDGE