COMMISSIONER OF INCOME TAX Vs. RAMAKRISHNA MILLS LIMITED

JUDGEMENT

(1.) THE revenue has filed appeal against the order of the Income-tax Appellate Tribunal in I. T. A. No. 2828/mds/93 for the assessment year 1990-91.

(2.) THE relevant assessment year is 1990-91. The material facts culminated in filing of the appeal are as follows: the assessee is a company in which the public are not substantially interested. For the relevant assessment year, the assessee filed a return of income on 31. 12. 1990. While completing the assessment, the assessing officer disallowed certain claims, including adjustment of book profit liability under Section 115j of the Income-tax Act as unabsorbed depreciation. The assessing officer further held that while computing the deduction under Section 80hhc, excise duty, sales tax and scrap sales should be included and thus passed assessment order.

(3.) THE assessee carried the matter on appeal to the Commissioner of Income-tax (Appeals), who inter alia held that computation of book profit is done under the extra ordinary provisions of Section 115j of the Act and it does not in any manner affect the computation of loss or depreciation of investment allowance, otherwise carried forward under the normal provisions of the Act. On further appeal to the Tribunal, the Tribunal held that the issue regarding carry forward loss and allowances when the income was assessed under Section 115j in favour of the assessee. Regarding the deduction under Section 80hhc, the Tribunal held that the excise duty and sales tax should not be included in the turnover for the purpose of calculating the benefit under Section 80hhc. The correctness of the order of the Tribunal is canvassed in this appeal.