(Per : HONOURABLE MS. JUSTICE HARSHA DEVANI) 1. The appellant – revenue has called in question the order dated 10th September, 1999 passed by the Income Tax Appellate Tribunal in ITA No.4432/Ahd/1990.
2. The assessment year is 1987-88. The respondent assessee claimed deduction under section 80IA as well as 80HH of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'). The Assessing Officer deducted the relief allowable under section 80HH and allowed deduction under section 80IA at 20% on the balance profit only. The assessee carried the matter in appeal before the Commissioner (Appeals) who held that the disallowance was not justified inasmuch as deductions under section 80HH and section 80-I are independent of each other and, therefore, deduction has to be allowed separately with reference to the income derived from the industrial undertaking. The revenue carried the matter in appeal before the Tribunal but did not succeed.
3. While admitting the appeal, this court had formulated the following substantial question of law:-
“Whether the appellate tribunal is right in law and on facts in directing to allow separate relief under sections 80HH and 80I of the Act, without considering the provisions of sub-section (9) of section 80HH of the Act?”
4. Mr. Bandish Soparkar, learned counsel for the respondent invited the attention of the court to the decision of this court in the case of Commissioner of Income-Tax vs. Amod Stamping, (2005) 274 ITR 176 to submit that the controversy involved in the present case stands concluded in favour of the assessee by the said judgment. Mr. M.R. Bhatt, learned senior advocate appearing on behalf of the appellant is not able to dispute the aforesaid position.
5. In Commissioner of Income-Tax vs. Amod Stamping (supra), a Division Bench of this court has held that while computing the profits for the purpose of availing of deduction under section 80-I, the profits and gains of the assessee's business are not required to be reduced by the deduction admissible under section 80HH. Thus, it is apparent that the controversy involved in the present case stands concluded in favour of the assessee by the above judgment. Under the circumstances, the question is answered in the affirmative i.e. in favour of the assessee and against the revenue. The appeal is, accordingly, dismissed.
( Akil Kureshi, J. ) ( Harsha Devani, J. ) hki