Delhi High Court
Commissioner Of Income Tax vs Marketing Research Corporation on 20 January, 1987
Author: S. Ranganathan
Bench: S. Ranganathan
JUDGMENT S. Ranganathan, J.
1. This is a reference at the instance of the CIT in relation to the asst. yr. 1968-69. The question referred to this Court is :
"Whether, on the facts and circumstance of the case the Tribunal was justified in law in holding that the assessed company was entitled to relief under s. 80-O of the IT Act on the gross receipt of Rs. 57,320 ?"
2. It is not necessary to state the case at great length because the point referred by the Tribunal is already the subject-matter of a decision by the Supreme Court in the case of Distributors (Baroda) Pvt. Ltd. v. Union of India and Ors. . The Supreme Court has held that for the purposes of s. 80-O the deduction has to be computed not on the basis of gross income but on the basis of net income. In view of the Supreme Court decision the question referred to us is answered favor of the applicant and against the assessed. The question is answered accordingly. There is no order as to costs.