High Court allows appeal on Section 80-IA deduction eligibility. Assessee can submit paper book to Tribunal. Investment amount clarified.

The High Court admitted the appeal regarding the Assessee's entitlement to deduction under Section 80-IA of the Income Tax Act, 1961. The Court directed the filing of paper books and granted liberty to the Assessee to submit the paper book before the Tribunal. The issue of the Rs. 60 lacs investment by M/s Gold Mark Enterprises did not raise a substantial question of law, as clarified that the investment amount for the relevant assessment year was Rs. 40 lacs.

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Issues Involved: The judgment involves two main issues: 1. Investment of Rs. 60 lacs made by M/s Gold Mark Enterprises, a company incorporated in Mauritius, and 2. Entitlement of the Assessee to deduction under Section 80-IA of the Income Tax Act, 1961.

Investment Issue: The Revenue challenged the order of the Income Tax Appellate Tribunal regarding the investment made by M/s Gold Mark Enterprises. The Tribunal had concluded that the identity of the investor was established by the Assessee, citing precedents like CIT vs. Achal Investment Ltd. and CIT vs. Steller Investment Ltd. The Tribunal found that the Assessee had met its initial burden, and the investment could not be considered undisclosed income. The Tribunal noted that no addition was made to the Assessee's income for the assessment year 1996-97. The High Court held that no substantial question of law arose regarding the Rs. 60 lacs investment by M/s Gold Mark Enterprises.

Clarification on Investment Amount: It was clarified that for the assessment year 1995-96, the investment amount was Rs. 40 lacs, not Rs. 60 lacs as initially mentioned.

Deduction under Section 80-IA Issue: The second issue raised by the Revenue concerned the entitlement of the Assessee to deduction under Section 80-IA of the Income Tax Act, 1961. The High Court found this issue to raise a substantial question of law and admitted the appeal on this ground. A specific question of law was framed regarding the correctness of the Income Tax Appellate Tribunal's decision on the Assessee's entitlement to deduction under Section 80-IA.

Conclusion: The High Court admitted the appeal on the second issue related to the Assessee's entitlement to deduction under Section 80-IA and directed the filing of paper books in accordance with the High Court rules, granting liberty to the Assessee to submit the paper book that was before the Tribunal.

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