COMMISSIONER OF INCOME-TAX Vs. CHEMIFINE

JUDGEMENT

(1.) THE decision rendered in this appeal shall also govern disposal of other connected appeal being I.T.A. No. 35/2000 as both the appeals involve a common question of law.

(2.) THIS is an appeal filed by the Commissioner of Income -tax (the Revenue) under Section 260A of the Income -tax Act, 1961, against an order dated May 16, 2000, passed in I.T.A. Nos. 215 and 216/IND/98. The appeal was admitted for final hearing on the following substantial question of law: Whether, on the facts and in the circumstances of the case and in law, the Income -tax Appellate Tribunal is justified in holding that the deduction as per the proviso to Section 80HHC has to be calculated independently without setting off the same against the loss worked out as per Clauses (a), (b) and (c) of Sub -section (3) of Section 80HHC relying on their own earlier order dated February 26, 1999, in I.T.A. Nos. 510 and 1026/IND/97 in the case of Alphine Solvex Ltd. v. Deputy CIT even though the same was not accepted by the Department and against which appeal under Section 260A of the Income -tax Act before the M.P. High Court is still pending for decision?

(3.) HAVING heard learned Counsel for the parties and having taken note of the submissions we are inclined to remand the case to the Tribunal by setting aside of the order impugned herein in so far as it relates to the issue sought to be urged in this appeal.