COMMISSIONER OF INCOME TAX Vs. MATHA ENGINEERS

JUDGEMENT

(1.) THE revenue has come up in this appeal, challenging the legality and correctness of the orders passed by the Income -tax Appellate Tribunal in ITA No. 618/Bang./2001, dated 21 -11 -2003, wherein the Tribunal has reversed the findings of the order passed by the Assessing Officer, which has been confirmed by the Commissioner of Income -Tax (Appeals). Bangalore, for the assessment year 1998 -99 of the Respondent -Assessee.

(2.) THE appeal is admitted to consider the following substantial questions of law: 1. Whether the Tribunal committed an error in holding that Section 80 -O deduction should be allowed on the gross income received by the Assessee by ignoring the provisions of Section 80 -AB of the Act, which contemplates granting of such a deduction on the amount of income as computed in accordance with the provisions of the act and the judgment of the Calcutta High Court - CIT v. M.N. Dastur and Co. (P.) Ltd. (2000) 243 ITR 10;(2002) 124 Taxman 91 and that of the Apex Court in 239 ITR 233 (sic)? 2. Whether the Tribunal was correct in holding that the expenses like depreciation and interest paid to the partners was not for earning income from services rendered abroad when the Assessee has no other business income and therefore cannot be taken into account for the purpose of computing deduction under Section 80 -O of the Act?

(3.) WE have heard the learned Counsel for the parties.