COMMISSIONER OF INCOME TAX Vs. SIMRAN FARMS LTD

JUDGEMENT

(1.) HAVING heard learned counsel for the appellant and having perused the record of the case we are of the considered view that the view taken by the Tribunal on the question sought to be raised by the appellant in this appeal is already answered against the Revenue in the case of J. P. Tobacco Products Ltd. v. CIT, (1998) 229 ITR 123 (UP), which, according to the learned counsel appearing for the Revenue, was eventually upheld even by their Lordships of the Supreme Court.

(2.) THE short question that fell for consideration before the assessing authority was as to how the deduction available to the assessee under Section 80-I of the Act should be calculated, with reference to the another provision, viz. , under Section 80hh. This precise issue was examined by this Court in J. P. Tobacco Products (supra) and it was answered against the Revenue, thereby accepting the interpretation placed by the assessee while calculating the deduction available under Section 80-I and 80hh of the Act.

(3.) IN this case, the AO, while calculating the deduction, did not follow the law laid down by this Court in J. P. Tobacco Products' case (supra) and, therefore, assessee came before the CIT (A) in appeal. The CIT (A) placing reliance upon the law laid down by this Court set-aside that part of the deduction and remanded the case to the AO by directing the AO to calculate the deduction under Section 80-I of the Act from the gross total income before allowing the admissible deduction under Section 80hh of the Act. This finding was sought to be challenged by the Revenue before the Tribunal and the same was repelled by passing the impugned order. The Tribunal, rightly placing reliance upon the view taken by this Court in the case of J. P. Tobacco Products (supra), upheld the direction given by the CIT (A) to the AO.