COMMISSIONER OF INCOME TAX Vs. HITECH ARAI LTD.

JUDGEMENT

(1.) These appeals are filed by the Revenue assailing the order dated 21.10.2005 passed by the Income Tax Appellate Tribunal 'C' Bench, Chennai, in I.T.A.Nos.289(Mds)/2001, 1565(Mds)/2003, 1869(Mds)/2003, 2069(Mds)/2003, 3312(Mds)/2004 and 3313(Mds)/2004 for the assessment years 1995-96 and 1997-98 to 2001-02, by raising the following substantial questions of law:

(2.) 1. At the outset, we notice that substantial question of law (v), namely, "Whether in the facts and circumstances of the case, the Tribunal was right in holding that excise duty and sales tax collection should be excluded from the total turnover for the purpose of calculation of deduction under Section 80HHC?", is squarely covered by a decision of the Supreme Court in Commissioner of Income Tax v. Lakshmi Machine Works, 2007 290 ITR 667and has been answered in favour of the assessee.

(3.) We also notice that substantial question of law (vi), namely, "Whether in the facts and circumstances of the case, the Tribunal was right in holding that the income from wind mill should be excluded from the turnover for computation of deduction under Section 80HHC?", has also been decided in favour of the assessee in Commissioner of Income Tax v. Madras Motors Limited, 2002 257 ITR 60. In view of the above, the substantial question of law (vi) is answered against the Revenue and in favour of the assessee.