2006 (11) TMI 167

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.... year 1995-96: "1. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the appeal which was filed prior to issue of the circular enhancing the minimum tax effect for filing an appeal to the Tribunal should be governed by the circular and dismissed?" For the assessment year 1996-97: "2. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that only gross income should be taken into account for the purpose of deduction under section 80-O?" 3. Whether, on the facts and circumstances of the case, the Tribunal was right in rejecting the departmental appeal on the ground that the expenses related to earning the foreign income had been estimated?" The brief fa....

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.... appeals to the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) allowed the appeals and directed the Assessing Officer to allow the deduction under section 80-O of the Act in respect of receipts specified in the said section without deducting any expenses. Aggrieved, the Revenue filed appeals to the Income-tax Appellate Tribunal (hereinafter referred to as "the Tribunal"). The Tribunal confirmed the orders of the Commissioner of Income-tax (Appeals) by relying on a decision of the Income-tax Appellate Tribunal, Bangalore Bench, in the case of M. N. Dastur and Co. Ltd. v. Deputy CIT and dismissed the appeals. Learned senior standing counsel appearing for the Revenue submitted that in respect of question No.1....

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....odananad Tea Estates Co. [2005] 275 ITR 244. In view of the same, we set aside the order of the Tribunal with a direction to consider the matter on the merits. In respect of question Nos. 2 and 3, relating to the assessment year 1996-97, we find that the Tribunal had not given any reasons and it simply relied on the Bangalore Bench decision of the Tribunal in the case of M. N. Dastur and Co. Ltd. v. Deputy CIT. The order of the Tribunal reads as under: "3. In the assessment year 1996-97, the Revenue is aggrieved by the decision of the Commissioner of Income-tax (Appeals) in allowing the deduction under section 80-O without deducting any expenses incurred by the assessee. The Commissioner of Income-tax (Appeals) while deciding the issue, ....