Gujarat High Court
Commissioner Of Income Tax vs Atul Oilcake Industries on 30 November, 2013
Author: M.R. Shah
Bench: M.R. Shah
COMMISSIONER OF INCOME TAX....Appellant(s)V/SATUL OILCAKE INDUSTRIES LTD.....Opponent(s) O/TAXAP/436/2006 JUDGMENT IN THE HIGH COURT OF GUJARAT AT AHMEDABAD TAX APPEAL NO. 436 of 2006 FOR APPROVAL AND SIGNATURE: HONOURABLE MR.JUSTICE M.R. SHAH Sd/- and HONOURABLE MR.JUSTICE R.P.DHOLARIA - Sd/- ============================================= 1. Whether Reporters of Local Papers may be allowed to see the judgment ? NO 2. To be referred to the Reporter or not ? NO 3. Whether their Lordships wish to see the fair copy of the judgment ? NO 4. Whether this case involves a substantial question of law as to the interpretation of the constitution of India, 1950 or any order made thereunder ? NO 5. Whether it is to be circulated to the civil judge ? NO ============================================= COMMISSIONER OF INCOME TAX....Appellant(s) Versus ATUL OILCAKE INDUSTRIES LTD.....Opponent(s) ============================================= Appearance: MR PRANAV G DESAI, ADVOCATE for the Appellant(s) No. 1 MRS SWATI SOPARKAR, ADVOCATE for the Opponent(s) No. 1 ============================================= CORAM: HONOURABLE MR.JUSTICE M.R. SHAH and HONOURABLE MR.JUSTICE R.P.DHOLARIA Date : 30/11/2013 ORAL JUDGMENT
(PER : HONOURABLE MR.JUSTICE M.R. SHAH) 1.0. Feeling aggrieved and dissatisfied with the impugned judgment and order passed by the learned Income Appellate Tribunal (hereinafter referred to as the ITAT) passed in ITA No. 148/RJT/2003 for the AY 1995-96 dated 12.8.2005, by which, the learned Tribunal has dismissed the said appeal preferred by the Revenue, Revenue has preferred present Tax Appeal.
2.0. At the outset, it is required to be noted that while admitting the present appeal, the Division Bench has framed the following substantial question of law.
Whether the appellate Tribunal is right in law and on facts in confirming the order passed by the CIT(A) directing the Assessing Officer to compute deduction under Section 80HHC of the Act, including therein, interest, which was income from other sources?
3.0. Heard Shri Pranav Desai, learned advocate for the appellant- revenue and Shri S.N. Soparkar, learned Senior Advocate for the respondent- assessee.
4.0. Considering the impugned judgment and order passed by the learned ITAT and while directing Assessing Officer to recompute the deduction under Section 80HH, 80I and 80IA of the Income Tax Act, 1961 holding that the interest is eligible thereon, the learned ITAT has relied upon the decision of the ITAT Delhi Special Bench in the case of Lalsons Enterprises Vs. DCIT reported in (89 ITD 25). It is reported that the decision of the Special Bench in the case of Lalsons Enterprises (supra) has been approved by the Hon ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd vs. Commissioner of Income Tax reported in (2012) 343 ITR 89(SC). In the case of ACG Associated Capsules Pvt. Ltd (supra) it is held by the Hon ble Supreme Court in the said decision that 90% of not the gross interest but only the net interest, which has been included in the profits of the business of the assessee as computed under the heads Profits and gains of business or profession is to be deducted under clause (1) of Explanation (baa) to Section 80HHC for determining the profits of business.
5.0. Applying the law laid down by the Hon ble Supreme Court in the case of ACG Associated Capsules Pvt. Ltd (supra) the question of law raised in the present appeal is held against the Revenue. Consequently present appeal deserves to be dismissed and is accordingly dismissed. No costs.
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(M.R.SHAH, J.) sd/-
(R.P.DHOLARIA,J.) Kaushik Page 3 of 3