The Commissioner Of Income Tax v. M/S Vicco Laboratories & Anr

IN THE HIGH COURT OF BOMBAY AT GOA TAX APPEAL NO. 42 OF 2002 THE COMMISSIONER OF INCOME TAX Versus M/S VICCO LABORATORIES & ANR ... Appellant... Respondent Ms. A. Dessai, Advocate for the appellant. Mr. V. A. Lawande, Advocate for respondent no.1. P.C. -Coram:D. G. KARNIK &F. M. REIS, JJ.-Date:30th August, 2010 Heard both learned counsel for the parties. 2. By Order dated 8.7.2002, the Division Bench admitted thisappeal on following substantial question of law:- " Whether the ITAT was justified in law in ignoring thedepreciation of Rs.15,84,696/- under section 32 of the Income TaxAct, while allowing deductions under sections 80(1A) to theAssessee?" 3. In our view matter is covered by the decision of the full benchin case of Plastiblends India Limited Vs. Additional Commissioner ofIncome Tax and others. The full bench held that quantum ofdeduction allowable under section 80-IA of the Income Tax Act hasto be determined by computing the total income from the businessafter taking into consideration all deductions allowable under section30 to 43D of the Income Tax Act. The full bench has further heldthat whether the assessee had claimed the deductions allowable under section 30 to 43D of the Income Tax Act or not, the quantumof deduction under section 80-IA has to be determined on the totalincome computed after deducting all deductions allowable undersection 30 to 43D of the Act. 4. In view of decision of the Full Bench, the question is answeredin favour of the Revenue and against the assessee. We accordinglyset aside the judgment of the ITAT and up hold and restore the orderof assessment and confirmed by CIT (Appeal)vide his order dated25.5.2001. Order accordingly. D. G. KARNIK, J. vn F. M. REIS, J.