Tribunal upholds Revenue's appeal on section 80HHC disallowance, remits for recomputation.

The Tribunal partially allowed the Revenue's appeals challenging the deletion of disallowance under section 80HHC for AYs 1999-2000 & 2003-04. It upheld the eligibility of the assessee for the deduction based on Supreme Court judgments but remitted the case to the Assessing Officer for recomputation in line with Gujarat High Court decisions. The Tribunal emphasized the importance of recalculating the deduction as per relevant court rulings.

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Issues:
- Appeal against order of CIT(Appeals) deleting disallowance under section 80HHC for AYs 1999-2000 & 2003-04.
- Eligibility of the assessee for deduction under section 80HHC.
- Compliance with amended provisions of section 80HHC(3) by the assessee.
- Interpretation of judgments by Hon'ble Supreme Court and Gujarat High Court regarding section 80HHC.
- Remitting the file back to the Assessing Officer for recomputation of deduction.

Analysis:
1. The appeals were filed by the Revenue against the order of the Commissioner of Income Tax (Appeals) for AYs 1999-2000 & 2003-04, challenging the deletion of disallowance under section 80HHC of the Income Tax Act, 1961. The Revenue contended that the assessee's turnover exceeded Rs. 10.00 Crores and had not complied with the amended provisions of section 80HHC(3), making them ineligible for the deduction.

2. The CIT(Appeals) relied on judgments of the Hon'ble Supreme Court and Gujarat High Court to hold that the assessee was indeed eligible for deduction under section 80HHC. The CIT(Appeals) directed the Assessing Officer to recompute the deduction in line with the decisions of the higher courts. Unsatisfied with this order, the Revenue appealed before the Tribunal.

3. After hearing both sides and examining the orders, the Tribunal found that the assessee correctly claimed deduction under section 80HHC based on the Supreme Court judgments. The Tribunal upheld the CIT(Appeals)' decision to delete the disallowance made by the Assessing Officer. However, the Tribunal decided to remit the file back to the Assessing Officer for recomputing the deduction in accordance with the Gujarat High Court decision.

4. The Tribunal partially allowed the appeals of the Revenue for statistical purposes, emphasizing the need for the Assessing Officer to recalculate the deduction as per the relevant court decisions. The order was pronounced in an open court session on June 10, 2014, in Chennai.

This detailed analysis highlights the key legal issues, interpretations of court judgments, and the Tribunal's decision to remit the matter back to the Assessing Officer for proper computation of the deduction under section 80HHC.

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