SHITAL FIBERS LIMITED Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) This group of appeals/petitions has been referred to a Bench of three Judges in view of the Order dtd. 10/12/2015 in Assistant Commissioner of Income Tax, Bangalore v. Micro Labs Limited, (2015) 17 SCC 96 which records difference of opinion between two Hon'ble Judges of this Court.

(2.) For the sake of convenience, we are referring to facts of the case in Civil Appeal No. 14318 of 2015. We may note here that some of the appeals in the group have been disposed of by the Order dtd. 1/8/2024 due to low tax effect.

(3.) We are referring to the facts of the case in Civil Appeal No. 14318 of 2015. Appellant is a company which filed a return declaring net taxable income at Rs.46,99,293.00 for the Assessment Year 2002-03. The appellant claimed deductions under Sec. 80-HHC and 80-IA of the Income Tax Act, 1961 (for short 'the IT Act'). The return was accepted on 31/10/2002. Reassessment proceedings under Sec. 147 of the IT Act were initiated in respect of the said Assessment Year by the order dtd. 10/12/2008 by the Assistant Commissioner of Income-Tax, Range II, Jalandhar. Reliance was placed by the Revenue on the decision of Income Tax Appellate Tribunal (for short 'ITAT'), Chennai (Special Bench) in the case of ACIT v. Rogini Garments, (2007) SCC OnLine ITAT 159. In the said Order dtd. 10/12/2008, under Sec. 147 of the IT Act, it was observed that a deduction of Rs.90,43,347.00 was claimed by the appellant under Sec. 80-IB on the total profit of Rs.4,19,40,609.00. The appellant claimed a deduction of Rs.1,76,90,799.00 under Sec. 80-HHC.