COMMISSIONER OF INCOME TAX Vs. DEWAN CHAND SATYAPAL

JUDGEMENT

(1.) This judgment disposes of appeals by the revenue under Section 260A of the Income Tax Act 1961 against the orders of the Income Tax Appellate Tribunal (hereinafter referred to as "ITAT") dated 16.08.2002, 26.10.2004 and 01.12.2005 respectively. The appeals involve similar substantial questions of law which are:

(2.) The respondent i.e. M/s Dewan Chand Satyapal (hereinafter referred to as "the assessee") is engaged in running an advanced radiological clinic providing services of X-ray, MRI, CT Scan and NMI etc. This Diagnostic Centre was setup in 1948. The Assessee established a new Magnetic Resonance Imaging (MRI) unit in the assessment year 1995-96. The assessment- for the assessment year 1995-96 -was completed under Section 143(3) at an income of Rs. .69,30,880/- by order dated 28.08.1997. Deductions under Section 80-IA were allowed to the assessee at Rs. .6,18,205/-. On 28.03.2000, the CIT issued an order under Section 263 of the Act which found that during the accounting year relevant to assessment year under consideration, the assessee established a new MRI unit and had claimed a deduction under Section 80-IA of the Income Tax Act, ("the Act") at Rs. .6,18,205/- and the deduction, as it existed then could be granted where the gross income of the assessee included any profits or gains derived from an industrial undertaking or a hotel etc manufacturing or producing any article or a thing not being the article or thing specified in the list in the Eleventh Schedule.

(3.) On 22.03.2002, a fresh assessment order was made by Assessing Officer under Sections 143/ 263 of the Act which disallowed the benefit of deduction under section 80-IA of the Act. The ITAT passed an order on 26.10.2004 which confirmed the order of the CIT and held that the Appeal of the Department was infructuous in view of the order of the ITAT dated 16.08.2002.