2012 (8) TMI 774

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....hether the Tribunal was right in holding that the levy of interest under Section 234B and C of the Income Tax Act, 1961 were legally valid while computing the total income under Section 115 JA? 2. The assessee herein is a public limited company engaged in the manufacture of watches and jewellery. For the assessment year 1997-98, the assessee filed a return of income admitting nil income, after claiming deduction under Chapter VIA. However, in the return of income filed, which showed an income of Rs.8,34,10,000/- under Section 115JA of the Income Tax Act, under the proceedings issued under Section 143(1)(a), the Assessing Officer determined the taxable income as per the particulars under Section 115JA and completed the assessment thereon;....

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....e assessment year 1997-98, wherein the assessee has raised the following substantial questions of law: (i) Whether the Tribunal was right in upholding the disallowance of Guest House expenditure under Sections 32, 37 and other provisions of the Income Tax Act, 1961? (ii) Whether the Tribunal was right in law in holding that the deduction under Sections 80HH, 80I and 80IA are not allowable in view of Section 80AB of the Income Tax Act, 1961? (iii) Whether the Tribunal was right in holding that the amount received from Timex Watches Limited are in the nature of commission and therefore, the deduction under Section 80HHC is not allowable? (iv) Whether the Tribunal was right in law in holding that the interest under Section 234B is ....

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....d in [2004] 266 ITR 521 (IPCA Laboratory Ltd. Vs. Deputy Commissioner of Income Tax).   7. Learned counsel appearing for the assessee pointed out that without questioning the applicability of Section 80AB to limit the relief to the extent of income, the question as to whether, in respect of the claim under the various provisions, relief has to be considered independently had not been considered by the Assessing Officer and hence, the assessment calls for a remand from this Court. In this connection, he referred to the decision reported in [2012] 341 ITR 488 (Chamundi Textiles (Silk Mills) Ltd. Vs. Commissioner of Income Tax), wherein, this Court considered the question of relief under Section 80HHC in the case of an assessee carryin....