COMMISSIONER OF INCOME TAX Vs. HARSH J PUNJABI

JUDGEMENT

(1.) After hearing learned counsel for the parties, the following substantial question of law is framed:

(2.) The respondent-assessee is an exporter and has two units; one at Gurgaon, and the other in Trident SEZ, Chennai. Income from the Chennai unit is exempt under section 10A of the Income-tax Act, 1961 ("the Act", for short).

(3.) For the assessment year 2005-06, the respondent-assessee filed a returned income of Rs. 1,41,70,404. The Assessing Officer passed an assessment order dated December 24, 2007, and assessed the income at Rs. 1,47,72,170. He accepted the profit earned from the SEZ unit at Chennai computed and declared by the assessee as Rs. 1,58,08,510. The said profit was held to be exempt under section 10A of the Act. An addition of Rs. 6,01,765 was made in respect of profits from the unit at Gurgaon by disallowing some expenses.