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Gujarat High Court

Principal Commissioner Of Income Tax-2 vs Meghmani Organics Limited on 12 February, 2018

Author: Akil Kureshi

Bench: Akil Kureshi, B.N. Karia

                  O/TAXAP/61/2018                                                 ORDER



                  IN THE HIGH COURT OF GUJARAT AT AHMEDABAD

                                    TAX APPEAL NO. 61 of 2018

         ==========================================================
              PRINCIPAL COMMISSIONER OF INCOME TAX-2,....Appellant(s)
                                   Versus
                    MEGHMANI ORGANICS LIMITED,....Opponent(s)
         ==========================================================
         Appearance:
         MRS MAUNA M BHATT, ADVOCATE for the Appellant(s) No. 1
         ==========================================================

          CORAM: HONOURABLE MR.JUSTICE AKIL KURESHI
                 and
                 HONOURABLE MR.JUSTICE B.N. KARIA

                                         Date : 12/02/2018


                                          ORAL ORDER

(PER : HONOURABLE MR.JUSTICE AKIL KURESHI)

1. Tax   Appeal   is  ADMITTED  for   consideration   of  following substantial question of law.

"Whether   the   Income   Tax   Appellate   Tribunal   committed   an   error   in   law   in   accepting   the   assessee's   contention   that   deduction   under   section   80HHC   of   the  the   Income   Tax   Act,   1961  should be made unit­wise as against that made by   the Assessing Officer by clubbing the export unit   and domestic usage and by taking export business   as a whole?"

2. We   notice   that   the   Revenue   has   also   proposed  another question with respect to exclusion of excise  duty   and  sales  tax   from  the   computation   of   turnover  for the purpose of section 80HHC of the the Income Tax  Page 1 of 2 HC-NIC Page 1 of 2 Created On Mon Feb 12 23:03:57 IST 2018 O/TAXAP/61/2018 ORDER Act, 1961 ('the Act' for short).  This issue is raised  particularly   in   context  of  section   145A   of   the  Act.  However,   we   notice   that   this   question   has   been  examined   by   this   Court   in   case   of  Commissioner   of   Income­tax­I   v.   Dyntex   Dyechem   Ltd.  reported   in  [2014]   42   taxmann.com   227   (Gujarat).    The   Court  relying on the judgment of the Supreme Court in case  of  CIT   v.   Lakshmi   Machine   Works  reported   in  [2007]   290 ITR 667 rejected the Revenue's contention in this  regard.  

(AKIL KURESHI, J.) (B.N. KARIA, J.) ANKIT Page 2 of 2 HC-NIC Page 2 of 2 Created On Mon Feb 12 23:03:57 IST 2018