2009 (10) TMI 112 - SC - Income Tax

Supreme Court clarifies tax deduction rules under Income-tax Act, allows further challenge

The Supreme Court addressed the interpretation of section 80-IA of the Income-tax Act, 1961, focusing on whether the assessee could claim a deduction ... Interpretation of section 80-IA - “Whether, on the facts and circumstances of the case, the learned courts below were right in holding that the assessee was entitled to the deduction under section 80-IA of the Act on the amount of entire eligible income without reducing the amount of export incentive from the same ?” - We grant liberty to the appellant herein to move the High Court and raise the issue specifically, particularly in view of the fact that an important question of law on interpretation of section 80-IA of the Act arises for determination. - In case the High Court finds that the answer to the above question needs factual finding(s), it may remit the case to the Income-tax Appellate Tribunal Issues: Interpretation of section 80-IA of the Income-tax Act, 1961In this judgment by the Supreme Court, the court addressed the interpretation of section 80-IA of the Income-tax Act, 1961. The court highlighted a specific question of law regarding whether the assessee was entitled to a deduction under section 80-IA without reducing the amount of export incentive from the eligible income. The court noted that this question had not been answered by the lower courts, providing the appellant with liberty to raise this issue before the High Court. The court emphasized the importance of determining this question and directed that if factual findings were necessary, the case should be remitted to the Income-tax Appellate Tribunal for proper disposal. The civil appeal was disposed of with no order as to costs. The judgment was delivered by S. H. Kapadia and Aftab Alam JJ.