CIT Vs. NAVBHARAT EXPLOSIVES CO (P) LTD

JUDGEMENT

(1.) The Income-tax Appellate Tribunal, Nagpur, (for short "the Tribunal", has made this reference under section 256(1) of the Income-tax Act, 1961 (for short "the Act", at the request of the Revenue and the Tribunal has referred the following question of law for our opinion :

(2.) Briefly stated facts of the case are that the assessee claimed deduction under sections 80HH and 80-I of the Act on interest earned from fixed deposits. The Assessing Officer was of the opinion that no relief can be allowed under sections 80HH and 80-I on the interest earned on fixed deposits and while calculating deduction allowable under sections 80HH and 80-I of the Act, reduced income from other sources from fixed deposit and recurring deposit by an amount of Rs. 3,15,469. However, the Commissioner of Income-tax (Appeals), relying upon the decision of the Income-tax Appellate Tribunal, Nagpur Bench in Asst. CIT v. Sugosa Oil Mills and Refinery Industries ITA No. 610/Nag./91, directed the Assessing Officer to allow the relief under section 80-1 without deducting reliefs under section 80HH of the Act and the decision has been further affirmed by the Tribunal. However, the Tribunal has referred the question of law for our opinion.

(3.) Shri Neelabh Dubey, learned counsel appearing on behalf of the respondent, submitted that indisputably the tax effect involved in this reference is less than Rs. 4 lakhs, which is less than the monetary limit fixed by the Central Board of Direct Taxes (for short "the Board") as per Instruction No. 5 of 2008, dated May 15, 2008, according to which the monetary limit for filing appeal/reference in the High Court has been fixed at Rs. 4 lakhs.