The Commissioner Of Income Tax v. M/S.prerna Textiles Industries Ltd

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO.1113 OF 2008 The Commissioner of Income Tax, Vs. M/s.Prerna Textiles Industries Ltd. ..Appellant ..Respondent Mr.Suresh Kumar for the Appellant.Mr.A.K.Jasani for the Respondent. P.C. CORAM :- DR.S.RADHAKRISHNAN &V.C.DAGA, JJ. DATE : 19TH NOVEMBER, 2008 .Heard the learned Counsel for the parties. By the above Appeal, the Appellant is seeking to raise the following substantial questions of law. a. Whether on the facts and the circumstancesof the case and in law the ITAT was correct inholding that in the previous year relevant toA.Y.1996-97, both the units, Unit-I andUnit-II of the assessee were simultaneouslyworking and hence the new factory in Unit-IIwas also eligible for deduction u/s.80IA ofthe IT Act?b. Whether on the facts and the circumstancesof the case and in law the ITAT was correct incognizing the Statement given byShri.S.N.Sharma, the General Manager of thefactory in Unit-II who categorically statedthat most of the old machines of Unit-I atRingawadi, Daman were shifted to Unit-II atDunetta, Daman in the months of October andNovember, 1995 and only then the business ofUnit-II had commenced. The statement ofShri.S.N.Sharma was also corroborated by theother employees of the assessee.c. Whether on the facts and the circumstancesof the case and in law the Hon’ble ITAT wascorrect in directing the Asessing Officer toallow the deduction u/s.80IA on the profitsand gains of Unit-I without reducing theprofit by the amount of deduction u/s.80 HHA? in favour of the Assessee and against the Revenue. is of 3. As far as question No.(a) & (b) are concerned, that the order of the CIT(A) does not suffer with any infirmity. regard to partly disallowing the Appeal of the Revenue. (V.C.DAGA,J.) (DR.S.RADHAKRISHNAN,J.)