2005 (7) TMI 663 - HC - Income Tax

High Court affirms Tribunal's decision on tax exemptions, remits for review. Entitlement to deductions subject to assessing officer's evaluation.

The High Court upheld the Tribunal's decision that the respondent-assessee was eligible for exemption under section 10A of the Income Tax Act, 1961. The ... - Issues involved: Interpretation of eligibility for exemption u/s 10A of the Income Tax Act, 1961 and entitlement to deduction u/s 80HHE.Interpretation of eligibility for exemption u/s 10A:The High Court upheld the Tribunal's finding that the respondent-assessee was not an old unit disentitled to the benefit of exemption u/s 10A. The matter was remitted back to the assessing officer with directions to allow exemption u/s 10A if all other requisites were satisfied. If not, the claim of deduction u/s 80HHE should be allowed after providing an opportunity to meet the requisites. The Court found the direction just and proper, as the determination of whether the assessee satisfies the pre-requisites for benefit under section 10A is within the assessing officer's purview.Entitlement to deduction u/s 80HHE:The Court also noted that the entitlement of the assessee to seek deduction u/s 80HHE was left to be determined by the assessing officer, contingent upon the assessee satisfying the pre-requisites stipulated for the grant of such benefit under the provision. No substantial question of law arose for consideration in the appeal, leading to its dismissal in limine.