DY CIT` Vs. BLUE BELL POLYMERS PVT LTD

JUDGEMENT

(1.) AT the time of admission of appeal following substantial question of law has been formulated by the High Court:

(2.) THE Assessment Year is 1990-1991, the relevant accounting period being Financial Year ended on 31. 03. 1990. The assessee, a Private Limited Company, claimed deduction, both under Section 80hha and Section 80i of the Income-tax Act, 1961 (the Act ). The Assessing Officer, after hearing the assessee, came to the conclusion that deduction claimed under Section 80hha is to be allowed first and while granting relief under Section 80i of the Act the amount granted as deduction under Section 80hha of the Act is required to be reduced from the relief allowable under Section 80i of the Act.

(3.) THE assessee carried the matter in appeal before the Commissioner (Appeals), who upheld the contention of the assessee that both the provisions operate independently and deductions are allowable under both the provisions without any amount being reduced from the relief available under Section 80i of the Act. The Tribunal, vide its order dated 08. 07. 1999, has confirmed the order of the Commissioner (Appeals) dismissing the appeal of the Revenue.