CIT Vs. ASHOK LEYLAND LTD

JUDGEMENT

(1.) This appeal is by the revenue against the order of the Tribunal, raising the question as to whether the Tribunal was right in holding that the short-term capital loss should not be deducted from the profits for the purpose of computation of deduction under Section 80HHC. The appeal relates to the assessment year 1990-91.

(2.) It is seen that while computing the business income for the purpose of Section 80HHC, the Income Tax Officer deducted the short-term capital loss from the income from business. On appeal, the Commissioner (Appeals) agreed with the assessee and held that the income from business for the puipose of Section 80HHC should be the one computed as per Section 28 and hence, the deduction needs to be recomputed by taking the business income without making any deduction for capital loss.

(3.) The revenue went on appeal before the Tribunal. The Tribunal followed the decision in the very same assessee's case in I. T. A. Nos. 61 and 70 (Mds)/1994 and dismissed the revenue 's appeal. Aggrieved of the same, the present appeal is filed before this Court.