TaxTMI 
TaxTMI 
2014 (8) TMI 5
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....grieved and dissatisfied with the impugned common judgment and order passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the "Tribunal") dated 07.01.2005 passed in ITA No.806/AHD/1999 for the AY 1994-95, ITA No.807/ AHD/ 1999 for the AY 1995-96 and ITA No.1475/AHD/2000 for the AY 1996-97, common appellant - assessee has preferred present Tax Appeals to consider the following substantial questions of law. Tax Appeal No.1346 of 2005 Whether on facts and in the circumstances of the case, Income Tax Appellate Tribunal, was right in law in confirming that the appellant was not entitled to the deduction under Section 80IA of the Income Tax Act, 1961 in respect of Central Excise Duty set off of Rs. 41,43,478/-and ....
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....sessing Officer passed the assessment order rejecting the assessee's claim to exclude the Central Excise and Sales Tax from total turnover for the purpose of computing deduction under Section 80HHC of the Act. The Assessing Officer also held that interest income, export incentive, central excise set off and the sales tax set off shall not be included for computing deduction under Section 80IA of the Act. 3.3. Feeling aggrieved and dissatisfied with the order passed by the Assessing Officer not accepting the claim of the assessee to exclude the Central Excise set off from total turnover for the purpose of computing deduction under Section 80HHC as well as to exclude interest income, export incentive, central excise set off and sales tax s....
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....tral Excise Duty set off of Rs. 41,43,478/- and Sales Tax set off Rs. 19,970/-? 4.0. Shri S.N. Divatia, learned advocate has appeared on behalf of the assessee and Shri Manish R. Bhatt, learned advocate has appeared on behalf of the revenue. 5.0. Shri Divatia, learned advocate for the assessee has vehemently submitted that learned Tribunal has materially erred in holding that assessee would not be entitled to deduction under Section 80IA of the Act as claim of Central Excise set off and Sales Tax set off. 5.1. Shri Divatia, learned advocate for the assessee has submitted that with respect to the Central Excise Duty set off and Sales Tax set off and denying the deduction under Section 80IA of the Act claimed by the assessee claimed ....
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....at all throughout the contention of the assesseee before both the lower authorities was that the set off had direct and proximate link with its business activities. 5.3. It is submitted that even otherwise and even assuming for the sake of argument that assessee had so contended but the Tribunal was supposed to examine the nature of said receipts instead of mechanically accepting the nature. It is submitted that though the decision in the case of Liberty India Limited reported in 317 ITR 218 (SC) has examined the scheme of DEPB so as to come to the conclusion that the profit from DEPB was in nature of export incentive but it does not deal with the nature of central excise duty set off and sales tax set off. It is submitted that in view o....
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....t is to be considered for the purpose of Section 80IA. It is submitted that the learned Tribunal has rightly observed that assessee cannot take too different stand while claiming deduction under Section 80HHC as well as under Section 80IA of the Act. It is submitted that therefore, the learned Tribunal has relied upon the decision of the Hon'ble Supreme Court in the case of Sterling Foods (supra) as rightly held that the assessee shall not be entitled to deduction under Section 80IA of the Act claim on the aforesaid two items i.e. Central Excise duty set off and Sales Tax set off. Therefore, it is requested to dismiss the present appeals. 7.0. Heard the learned advocates for the respective parties at length. The question which is pos....