COMMISSIONER OF INCOME TAX Vs. SWASTIK INDUSTRIES

JUDGEMENT

(1.) THE Tribunal, Ahmedabad Bench 'B', has raised the following common question for the opinion of this Court under S. 256(1) of the IT Act, 1961 (hereinafter referred to as 'the Act') :

(2.) THE assessment years are 1977-78 and 1978-79, the relevant accounting periods being S.Y. 2032 and 2033. The assessee claimed deduction under S. 80HH of the Act, without deducting weighted deduction under S. 35B of the Act, from the profits and gains relatable to the industrial undertaking. The said claim was rejected by the AO. In appeal, the CIT(A) upheld the claim made by the assessee by following the decision of the Tribunal, Calcutta Bench, rendered in ITA No. 1424/Cal/1982 in the case of Bihar Mercantile Union (P) Ltd. vs. ITO. The order of the CIT(A) came to be confirmed by the Tribunal without assigning any independent reasons as the Tribunal chose to adopt the view expressed by the Calcutta Bench of the Tribunal.

(3.) HE placed reliance upon an unreported decision of this Court in case of CIT vs. Cadila Chemicals (P) Ltd. being IT Ref. No. 80/1990, dt. 24th Sept., 2001. It was submitted that an almost identical question was raised by the Revenue vide question No. 2 in the said reference, the only point of difference being, there the item was initial depreciation. Thus, according to Mr. Bhatt, the controversy raised in the present reference was concluded by the decision rendered in relation to question No. 2 in the aforesaid reference.